Demystifying Distributable Net Income (DNI) – This session will discuss the theory behind distributable net income (DNI), how the Internal Revenue Code defines DNI and the three reasons why DNI is important. The program will review sample calculations of DNI and how DNI gets reported on a Form 1041. The program will discuss how DNI gets allocated among the beneficiaries of a simple trusts and complex trust including a discussion of the tier system, the separate share rule, the 65 day rule, specific bequests and distributions in kind. This program will incorporate drafting techniques to incorporate into estate planning documents to achieve the best income tax results.
Identify the fundamental of distributable net income, what it is and why it is important.
Recognize how DNI is allocated between the trust and beneficiaries and the difference for the allocation of DNI for simple and complex trusts.