Compare the estimated tax cost of distributing trust income now with retaining it inside the trust. Enter separate trust and beneficiary tax rates to quantify current-year tax savings or added cost and after-tax cash to the beneficiary.
Mixed tax = distributed income × beneficiary rate + retained income × trust rate
The main result is the beneficiary's after-tax cash from the entered distribution share.
This is a planning estimate, not tax, legal, or investment advice. Actual treatment depends on jurisdiction, trust terms, holding periods, and individual circumstances.
For $100,000 of income, 60% distributed, a 37% trust rate, and a 24% beneficiary rate, modeled tax is $29,200 versus $37,000 if all income were retained—a $7,800 reduction.
No. Trust terms, beneficiary needs, asset protection, and future taxes also matter.
No. It compares user-entered effective rates on a simplified income split.
It means the entered distribution split creates more modeled tax than retaining all income.
Yes. Set income distributed to 100%.
No. Retained after-tax assets remain in the trust and are not included in beneficiary cash.
| Scenario | Rate applied |
|---|---|
| Distributed income | Beneficiary effective rate |
| Retained income | Trust effective rate |
| All retained comparison | Trust rate on all income |