Common use of Distributions to Avoid Undistributed Income: Clause in Contracts

Distributions to Avoid Undistributed Income:. With respect to any trust governed by this instrument, the Trustee is authorized to distribute to any one or more of the beneficiaries from the principal thereof such sums as in the sole discretion of the Trustee shall be sufficient to insure such trust being treated under the Federal Income Tax Law as one having "no undistributed net income" for a given taxable year, as that term is defined in Section 665 of the Internal Revenue Code, as amended, if the Trustee in the Trustee's sole discretion shall deem such treatment desirable for any reason.