Can the sole beneficiary, who is also the trustee of an irrevocable trust, distribute the IRA income the trust received (trust doesn't pay the taxes) to a non-beneficiary of the trust without the inconvenience of a court ruling? The reason for this is for him to have less taxable income which would then qualify him for a large tax credit for Obama Care Health Insurance.(The non beneficiary is his mother in law and her will provides for all her assets to go to his wife, so hopefully he will eventually get it back). As far as the IRS is concerned they are getting paid their taxes either way! The other option, leaving the money in the trust, was ruled out because it doesn't make financial sense considering the trusts greater tax burden.