Question
When do first-tier beneficiaries get DNI before others?
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Answer
When distributions exceed DNI, required income beneficiaries are paid first.
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Question
Why is a grantor trust ignored for income tax purposes?
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Answer
The grantor keeps enough powers or interests, so income is taxed to the grantor.
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Question
Why can substantially separate shares be treated separately for DNI?
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Answer
To prevent one beneficiary from being taxed on another share's income.
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Question
How does DNI affect the income distribution deduction?
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Answer
The deduction cannot exceed DNI, reduced by tax-exempt income.
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