FullCalculator

Trust Distribution Calculator

Trust Distribution

Calculate the periodic distribution amounts from a trust based on the trust balance and distribution schedule.

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Formula

Annual Distribution = Trust Balance x Distribution Rate; Projected Balance = (Balance - Distribution) x (1 + Growth Rate) over each year

Frequently Asked Questions

What is a typical trust distribution rate?
Many trusts distribute 3% to 5% of the trust balance annually. The Uniform Prudent Investor Act suggests that a total return approach balancing growth and income is appropriate for most trusts.
Can a trust last indefinitely?
Trust duration depends on state law. Some states allow perpetual trusts, while others follow the Rule Against Perpetuities, which typically limits trusts to about 90 years or a life in being plus 21 years.

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