Forecast the income an estate or trust portfolio could generate and the amount remaining after estimated administration expenses and tax. Enter portfolio yield, annual growth, expense, and tax-rate assumptions to view first-year net income and five-year totals. The calculation is intentionally jurisdiction-neutral and does not determine fiduciary accounting income.
Annual gross income = projected portfolio value × yield. Net income = max(0, gross income − administration expense) × (1 − tax rate).
Net income is cash remaining after the modeled annual expense and income tax, not a determination of fiduciary accounting income.
The model holds yield, expense, and tax rate constant and does not reduce principal for distributions.
A $2,000,000 portfolio at 4% yields $80,000 in year 1. After $25,000 of expense and 25% tax, first-year net income is $41,250.
No. This model estimates portfolio income and does not treat principal as income.
Use it for the income tax applicable to the modeled income; transfer taxes on principal are outside this forecast.
The calculator subtracts them for cash-flow purposes, but deductibility requires professional review.
No. The simplified forecast grows portfolio value independently and assumes income does not reduce principal.
Both gross and net totals are displayed so the effect of the entered tax rate is visible.
| Measure | Definition |
|---|---|
| Gross income | Portfolio × yield |
| Pre-tax net | Gross income − expense |
| Net income | Pre-tax net × (1 − tax rate) |
| Portfolio growth | Applied before later-year income |