Distributable Net Income

Creating trusts for estate planning and Medicaid planning is an essential tool for every estate planning and elder law attorney. However, any time a trust is created, there are income tax consequences that could be both unexpected and…

In this report, Blattmachr and Gans explain how new regulations promulgated in January make reaching and fundamental changes to some tax rules that are dependent on the concept of fiduciary accounting income (FAI) under local law.

In January 2004, the Treasury Department issued extensive new regulations about the meaning of "income" in a fiduciary accounting sense. Fiduciary accounting income, even though it is a state law concept, has vast impact under the Federal…

This article addresses one aspect of the recent regulations promulgated under section 663 of the Internal Revenue Code of 1986 as amended (IRC or "Code"), specifically Treas. Reg. § 1.663(c)-5. Example 7 of the regulation provides that…