Which of the following statements relating to trusts is CORRECT?
A) A simple trust is required to distribute all of its income in the year earned.
B) A complex trust is required to distribute all of its income in the year earned.
C) A simple trust may distribute principal during the year.
D) A complex trust may only distribute principal during the year in which the trust terminates.
Answer: A) A simple trust is required to distribute all of its income in the year earned.