capital gains - trust

I've been reading about pulling capital gains out of a trust and tax those to the beneficiary. The trust's sole beneficiary has about $200k of capital loss carry-over, so this would be a lot of $$.

The trust document requires quarterly distributions of the net income - ok. It doesn't anything about cap gains distributions and the discretion of where those get taxed. But there is a clause that states that up age 30, 25% of the FMV principle can be distributed, and increases the % with age. Could this be the same as the 643 regs that state that cap gains can be included in DNI if:

Allocated to corpus but actually distributed to the beneficiary or utilized by the fiduciary in determining the amount that is distributed or required to be distributed to a beneficiary.

That is - because the beneficiary just has request the principle, and if some of this principle comprised of money from cap gains during the year, then the cap gains can flow through?

Thank you.

You have a lot of reading to do. Start here:

https://my.queens.edu/epd16/Goldsbury%20-%20Handout.pdf