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Distributions

Calculate unitrust distribution

You can calculate the unitrust distribution in the following 3 ways.
  • Mark the
    Required distribution determined with reference to accounting income
     field on the
    SIT
     screen. The unitrust amount calculates as the lesser of trust accounting income or the unitrust amount. In this case, Form 5227, lines 66a and 66b, are completed.
  • Enter an amount in the
    Total accrued distribution deficiencies from previous years
     field on the
    SIT
     screen. The unitrust amount calculates to include the deficiency amount. In this case, Form 5227, lines 66a, 67a, and 67b are calculated.
  • If both of the previous fields are blank, the unitrust amount calculates on line 65b as the product of the unitrust fixed percentages times the FMV of net assets as calculated on Form 5227, Part IV. For the initial year of the trust, the unitrust amount is prorated based on the date in the
    Date created / decedent's date of death
     field on the
    1041
     screen. For the final year of the trust, the unitrust amount is prorated based on the date in the
    Date of termination
     field on the
    1041
     screen. The result displays on Form 5227, line 68.
If there's more than 1 unitrust beneficiary, the unitrust amount allocates among the beneficiaries using percentages entered in
View
,
Beneficiary Information
,
Federal
,
Other Returns
. If there are no percentages, the unitrust amount allocates evenly among the beneficiaries. There's a field on the
SIT
 screen to force the amount for Form 5227, line 68.
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