Enter your trust's distributable amount, number of beneficiaries, and reserve percentage. Get instant per-beneficiary shares then generate the documented minutes with one click.
Calculate Distribution NowTrustees who draft distribution minutes without first calculating the exact distributable net income (DNI) risk three common errors: overstated distributions that deplete reserves, unequal splits that trigger impartiality challenges, and tax misclassifications that expose the trust to IRS penalties. This calculator solves the math problem first so your minutes are grounded in real numbers.
Set a reserve percentage (recommended: 5 15%) to ensure the trust retains liquidity for taxes, fees, and unexpected liabilities.
Split equally or assign custom percentages. The calculator validates that percentages total 100% before you commit.
After calculating, copy the pre-written resolution text straight into your trust distribution minutes template.
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DNI is the trust's taxable income for the year, adjusted by certain deductions and gains. It determines how much of a distribution is taxable to the beneficiary (carried out on Schedule K-1) versus taxable to the trust. This calculator does not compute DNI from tax forms it assumes you have already determined the distributable amount and want to split it among beneficiaries.
Most practitioners recommend 5 15% for ongoing trusts, and up to 25% for trusts nearing termination or with pending litigation. The reserve should cover estimated taxes, trustee fees, accounting costs, and a cushion for unanticipated expenses. Document the reserve rationale in your distribution minutes.
Yes if the trust instrument permits. Discretionary trusts often allow the trustee to consider each beneficiary's needs. However, unequal splits must be documented with the factors considered (HEMS, support, education) to demonstrate impartiality. Use the "Specified percentages" mode and record your reasoning.
No. This tool performs arithmetic splits only. It does not compute tax liability, DNI under IRC § 643, or legal compliance. Always consult a CPA for tax classification and an attorney for fiduciary law questions.
Once you have calculated the shares, use our free distribution minutes template to create a defensible record. It takes 3 minutes and protects every decision.