Distributable net income (DNI) has long been a complicated concept for fiduciaries, who — in making distributions — must consider the income tax consequences to both the trust or estate and its beneficiaries. When fiduciaries also must contend with the interplay of capital gains and DNI, the situation can become murky, indeed. The rise of total return theory in trust investing has led many jurisdictions to adopt unitrust conversion statutes as well as the Uniform Principal and Income Act.
Deciphering DNI In a Unitrust World
Distributable net income (DNI) has long been a complicated concept for fiduciaries, who in making distributions must consider the income tax consequences to both the trust or estate and its beneficiaries. When fiduciaries also must contend with the interplay of capital gains and DNI, the situation can become murky, indeed. The rise of total return theory in trust investing has led many jurisdictions
All access premium subscription
Please Log in if you are currently a Trusts & Estates subscriber.
If you are interested in becoming a subscriber with unlimited article access, please select Subscription Options below.
Questions about your account or how to access content?
Contact: [email protected]
0 comments
Hide comments
