Currently “Entitled” to Income or Principal




A beneficiary of a trust who is currently eligible to receive income or to access the principal will be “entitled” to payments within the meaning of the disclosure rules, unless the trust does not provide any standard for an enforceable right to payment.

In OGE’s experience, many trusts provide the trustee with some discretion over certain matters, for example, the timing, amount, or source (principal or income) of payment.  However, such discretion, by itself, does not mean that the filer lacks an enforceable right to payment.  In addition, many trusts permit payments only for specific purposes, for example, health care or education.  Such a limitation, by itself, does not mean that the filer lacks an enforceable right to payment.  Finally, even if there is no enforceable right to payment, a beneficiary’s current interest would be reportable if the beneficiary is also the trustee, co-trustee, or the settlor.  See OGE DAEOgram DO-08-024 (August 6, 2008) and OGE Legal Advisory LA-13-04 (April 9, 2013).