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Practice Note: The Trust is complex with a Simple Provision. A Complex Trust can accumulate income and distribute from the corpus. A simple trust must pay its income to the beneficiaries. A complex trust is not required to do so. This is one reason the Trust has such a tax advantage.

Found 16 professional articles and 10+ court cases analyzing or referencing the complex provision of the trusts. There are no cases challenging this provision.

[T]rusts are included among the pass-through entities receiving the preferential [tax] treatment. . . . perhaps particularly for so-called “complex trusts”…
Ron Aucutt’s “Top Ten Estate Planning and Estate Tax Developments of 2017
McGuireWoods LLP Ronald Aucutt January 11, 2018

The Chen Trust 1 was a domestic non-grantor trust, a complex trust for United States federal income tax purposes.
In re Adrian Chen Tr. No. 1
J-A30006-17 (Pa. Super. Ct. Apr. 12, 2018)

In construing the above statute relating to a complex trust, the courts were uniform in holding that to be deemed “properly paid or credited” the trust income must have been irrevocably and unconditionally placed at the disposal of the beneficiary.
Hay v. United States
263 F. Supp. 813 (N.D. Tex. 1967) Cited 8 times