Trust Distribution Calculator

Trustees and beneficiaries both need a clear picture of what a trust will pay out and when. By turning a trust balance and a payout rule into a yearly and monthly amount for each beneficiary, this tool supports compliance, sharper financial planning, and fewer disputes between the parties. Reliable projections matter for a trustee meeting fiduciary duties and for a beneficiary planning around long-term income.

The calculator multiplies the trust balance by one of three fixed rates and splits the result equally among the beneficiaries: 4% for Income Only, an assumed yield standing in for the trust's actual interest and dividends; 5% for Principal Distribution; and 5% for Unitrust. Five percent is the statutory minimum for a charitable remainder unitrust, which must pay a fixed percentage of at least 5% and at most 50% of its assets, revalued every year (IRC §664(d)(2)); a unitrust may instead be drafted to pay the lower of that amount and the trust's actual income (§664(d)(3)). The calculator has no trust-type selector and does not model that income option or any taxes.

The trust instrument always controls. Because its specific distribution clauses override any generic formula, read them alongside the output and watch for discretionary language or special conditions governing invasions of principal, which are easy to miss. Note too that income distributions and principal distributions can carry different tax consequences for beneficiaries, so the two are worth separating.