Since annuity has no income buildup inside, are these distributions considered return of capital?  Under IRC sec. 72, all distributions of an annuity to a "non-natural person" (trust) are considered ordinary income. 

Question: Since there is no income in the annuity, would these be considered return or principal, and would distributions of unitrust amount to beneficiary be considered as having been made from Corpus and therefore would be non-taxable?

Please advise