Re: Distribution increases substantially
The distribution consumes 7% of trust assets per year. To increase assets must earn more than 7% per year. And a bad stock year can reduce payments. Assets value on the last business day of January are used to determine pay out quarterly for the year. All surviving beneficiaries share equally in the 7%.
The annual gift tax exemption is adjusted for inflation every year. Last year increased by $1000. Keeping distributions below the exemption is a bit of a horse race but if exceeded i think amounts will be small.