Tax Dictionary
Simple trust
A simple trust is one for which the trust instrument requires that all income be distributed currently, with no authority to make charitable contributions. Also, the trust is a simple trust only for a year in which it distributes current income and makes no other distributions to beneficiaries. A simple trust is entitled to a $300 deduction in lieu of a personal exemption. For a year in which the trust does not meet these requirements, it is a complex trust.