Free educational tool · Trusts & Estates

Trust Distribution Planning Engine

Identify the directional amount of entered DNI that may be carried out and the records needed for allocation.

Tax year 2026 · Last reviewed 2026-07-28 · Inputs stay in your browser

Trusts & Estates · Educational Decision Engine

Trust Distribution Planning Engine

Compare entered distributions with entered distributable net income (DNI) to organize a fiduciary tax conversation. The tool does not calculate DNI, fiduciary accounting income, beneficiary shares, or legal distribution authority.

Professionally computed distributable net incomeDo not substitute book income or cash balance.

Fiduciary accounting incomeDetermined under the instrument and applicable local law.

Income required to be distributed currentlyUse the amount determined from the instrument and local law.

Other amount paid, credited, or requiredInclude second-tier cash distributions for this directional comparison.

Tax-exempt income included in entered DNICharacter allocation requires a full Schedule B computation.

Beneficiaries receiving distributionsSeparate-share and tier rules may apply.

A noncash asset is being distributedBasis, gain recognition, valuation, and Section 643(e) require review.A beneficiary may be a foreign personWithholding and Forms 1042/1042-S may apply.Capital gains may be included in DNI or allocated to incomeInstrument, local law, consistency, and fiduciary actions matter.Beneficiaries may have substantially separate and independent sharesDNI may need separate-share allocation.

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Trust Distribution Planning Engine

Trust Distribution Planning Engine

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Use this result to prepare for professional review—not to take a filing or transaction position.