Common use of To Make Distributions from Qualified S Trusts Clause in Contracts

To Make Distributions from Qualified S Trusts. The Trustees are authorized to distribute to the beneficiary of any trust that has made a qualified S Corporation election under I.R.C. §1361 et seq. from income or principal, or both, funds sufficient to pay the federal and state income taxes imposed on the beneficiaries for the income or gain passing to the beneficiary from the S Corporation. No such distribution is required.