[WSBAPT] Trust Question re Capital Gains Income

[Rebecca King]

Hi everyone,

Trust language says, "After the death of the Grantor and Grantor's spouse, the Trustee shall distribute the net income of the Family Trust equally to the surviving children of the Grantor."  The principal continues to be held in Trust.  If assets are sold which have capital gains, does that capital gains income need to be paid out to the Grantor's children?  There is no definition of "income" in the Trust.  I cannot find any case law on point, which is surprising because I would think this issue would come up all the time for Credit Shelter/QTIP trusts.

Thank you!

Rebecca King
Attorney

Northwest Elder Law Group
2150 N. 107th Street, Suite 501
Seattle, WA 98133
Main: (206) 937-6102
Direct Line and Fax: (206) 866-6544
www.nwelg.com

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