What is the effect of a payment by the trust to the taxpayer of 1.7 million dollars prior to the winding up of the trust?

It is the respondent’s further submission that, whatever the reason was for the payment by the trust to the taxpayer of 1.7 million dollars, it was not distributed in satisfaction of all or any part of her income interest in the trust. Its reasoning in support of this is that the rule in Saunders v. Vautier does not permit the amendment of the trust, the parties did not purport to amend the trust in any event, and, since the rule in Saunders v. Vautier only permits the winding up of the trust, the payment to the taxpayer immediately before the winding up of the trust was not in accordance with the terms of the trust and constituted a breach of the fiduciary obligation of the trustee.