Trust Distribution Calculator

Calculate trust distributions between income and principal across beneficiaries.

About Trust Distribution Calculator

The trust preserves principal only when total return exceeds distributions plus fees. Setting the distribution rate above that threshold gradually depletes what remainder beneficiaries receive. Trustee fees are often overlooked yet a 0.8 per cent fee consumes a fifth of a 4 per cent distribution's worth of return, which compounds against the remainder over decades.

Formula

Trust Distribution

Net growth = total return − distribution rate − trustee fees, compounded over the period

distribution rate: Percentage of principal paid out annually
remainder beneficiary: Whoever receives the principal when the trust terminates

Worked example

With the default values below, Trust Distribution Calculator returns Annual Distribution of $48,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Trust principalminimum 0: 1,200,000
Annual total returnaccepts 0–25 %: 6.5 %
Distribution rateaccepts 0–20 %: 4 %
Annual trustee feeaccepts 0–5 %: 0.8 %
Income beneficiariesminimum 1: 3
Years to projectaccepts 1–60 years: 20 years

Results

Annual Distribution: $48,000.00
Distribution per Beneficiary: $16,000.00
Projected Principal After the Period: $1,681,126.15
Annual Trustee Fee: $9,600.00
Change in Principal Over the Period: 40.09%

Step by step

1Values used
2Trust Distribution
3Annual Distribution= 48,000.00
4Distribution per Beneficiary= 16,000.00
5Projected Principal After the Period= 1,681,126.15
6Annual Trustee Fee= 9,600.00
7Change in Principal Over the Period= 40.09

Assumptions and limits

The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or tax into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is a general illustration, not financial, tax or legal advice. Rules, thresholds and rates vary by jurisdiction and change frequently, and individual circumstances materially affect outcomes. Consult a qualified adviser before making any decision based on these figures.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

This is a general illustration, not financial, tax or legal advice. Rules, thresholds and rates vary by jurisdiction and change frequently, and individual circumstances materially affect outcomes. Consult a qualified adviser before making any decision based on these figures.

Frequently Asked Questions

How is Trust Distribution calculated?

Net growth = total return − distribution rate − trustee fees, compounded over the period The trust preserves principal only when total return exceeds distributions plus fees. Setting the distribution rate above that threshold gradually depletes what remainder beneficiaries receive.

Why does Trust Distribution matter?

Trustee fees are often overlooked yet a 0.8 per cent fee consumes a fifth of a 4 per cent distribution's worth of return, which compounds against the remainder over decades.

What values do I need to enter?

This calculator takes 6 inputs: Trust principal, Annual total return, Distribution rate, Annual trustee fee, Income beneficiaries, Years to project. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.