For informational purposes only; not legal or tax advice. Always confirm with your trust document and a qualified professional.
How this is calculated
- 1
Enter the total amount
The total dollar amount available to distribute from the trust.
- 2
Set the number of beneficiaries
How many people or entities will receive a share of the distribution.
- 3
Choose the method
Equal shares split the amount evenly. Specified percentages let you assign each beneficiary a custom share that must total 100%.
- 4
Apply withholdings
A reserve withholding (default 10%) and optional tax withholding reduce the net amount actually paid out.
Frequently asked questions
What is a reserve withholding?
A reserve is an amount the trustee holds back from a distribution to cover future expenses, taxes, or contingencies. It is common to hold 10% or more until the trust is fully administered.
Do trusts pay tax on distributions?
Trusts generally pay tax at the trust level on retained income. Distributions to beneficiaries may carry out distributable net income, which the beneficiary then reports. This calculator is informational only; consult a tax professional.
What does per stirpes mean?
Per stirpes means a share passes down to a deceased beneficiary's children. This calculator supports equal and specified-percentage methods; per stirpes is coming soon.
Should I document the distribution in trust minutes?
Yes. Recording the amount, method, and reasoning for each distribution is one of the strongest protections a trustee has against later beneficiary challenges.
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