Beneficiaries, trust creators, and trustees may have questions about discretionary and mandatory distributions from trusts. Trust language and requirements for distributions can be confusing, especially if you are new to learning about estates and trusts. What Are Distributions from Trusts? Trust creators make trusts to benefit specific people listed in the trust documents. These people are known as beneficiaries. Trust creators also specify how a trust should pass on benefits to the beneficiaries. For example, trust creator might instruct the trustee to distribute part of the trust principal to a beneficiary when a certain event happens. The principal is the original money or property that the trust creator contributed to the trust shortly after it was formed. Alternatively, the beneficiaries might receive the income from all trust assets during their lifetimes. Since larger trusts can earn substantial interest and dividends, the income could be a significant amount. What Is a…