§2156.2. Income taxes
A. A tax required to be paid by a trustee based on receipts allocated to income shall
be paid from income.
B. A tax required to be paid by a trustee based on receipts allocated to principal shall
be paid from principal, even if the tax is denominated an income tax by the taxing authority.
C. A tax required to be paid by a trustee on the trust's share of a juridical person's
taxable income shall be paid as follows:
(1) From income to the extent that receipts from the juridical person are allocated
only to income.
(2) From principal to the extent that receipts from the juridical person are allocated
only to principal.
(3) Proportionately from principal and income to the extent that receipts from the
juridical person are allocated to both income and principal.
(4) From principal to the extent that the tax exceeds the total receipts from the
juridical person.
D. After applying the provisions of this Section, the trustee shall adjust income or
principal receipts to the extent that the trust's taxes are reduced because the trust receives a
deduction for payments made to a beneficiary.
Acts 2020, No. 17, §1, eff. Jan. 1, 2021.