another trust question

[schirallicpa]

(I feel like I'm asking a lot of questions lately...)

This trust is set up from an estate that funded the trust for the purpose of community development.  The trust funds are invested in stocks and had about 10K of investment income.  The trust did not spend any money because it really only got going in December.  (There are 3 trustee that are trying to write bylaws etc on how the money will be spent and how they will decide.)

So - since no money went out, does the Trust just pay the tax?  Presumably the trust will outspend the income in the next few years until all of the money is spent. 

And the trustees take no draws themselves.  In fact, they are not named to take any benefit from it.

 

[DANRVAN]

3 hours ago, schirallicpa said:

estate that funded the trust for the purpose of community development

 

Will the trust make distributions to a public charity as instructed by the governing instrument?

 

If so, the they might be able to take a Charitable deduction for funds permanently set aside.

 

3 hours ago, schirallicpa said:

(There are 3 trustee that are trying to write bylaws etc on how the money will be spent and how they will decide.)

 

 Possibly a Private Foundation?

[DANRVAN]

1 hour ago, DANRVAN said:

instructed

"or as allowed by the governing instrument"