Trusts are either simple or complex.
A trust that is permitted but not required to distribute principal is a complex trust in years when principal is actually distributed, but may be a simple trust in a year when no distributions are made. A trust which can either distribute or accumulate income is always a complex trust even in years when all income is distributed. All trusts are complex in their final year because all principal must be distributed when the trust terminates. Excess Deductions Depreciation and Depletion Charitable Deductions Income Distribution Ded. Distributable Net Income Grantor Trusts Investment Mgmt.