Trusts that allow accumulation of income and distribute income on a discretionary basis.

• A. Express
• B. Implied
• C. Holographic
• D. Complex

Answer: (D)

Trusts that can accumulate income and distribute it at the trustees’ discretion are complex trusts. The defining feature here is the ability to retain or accumulate income for future periods and to decide, rather than having a fixed rule, how much income to distribute to beneficiaries. This flexibility sets complex trusts apart from simple or express trusts, which typically must distribute income currently or follow explicit terms. Express trusts are created by a clear declaration and specify distribution terms; implied trusts arise by law to prevent unjust enrichment; holographic trusts refer to handwritten testamentary arrangements. The combination of income accumulation and discretionary distribution aligns specifically with complex trusts.