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§ 15-527. Income taxes

West's Annotated Code of MarylandEstates and TrustsEffective: October 1, 2012

West's Annotated Code of Maryland
Estates and Trusts (Refs & Annos)
Title 15. Fiduciaries (Refs & Annos)
Subtitle 5. Maryland Uniform Principal and Income Act (Refs & Annos)
Part V. Allocation of Disbursements During Administration of Trust (Refs & Annos)
Effective: October 1, 2012
MD Code, Estates and Trusts, § 15-527
§ 15-527. Income taxes
Currentness
Taxes based on receipts allocated to income paid from income
(a) A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income.
Taxes based on receipts allocated to principal paid from principal
(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 called an income tax by the taxing authority.
Allocations for trust’s share of an entity’s taxable income
(c) A tax required to be paid by a trustee on the trust's share of an entity's taxable income shall be paid :
(1) From income to the extent that receipts from the entity are allocated only to income;
(2) From principal to the extent that receipts from the entity are allocated only to principal;
(3) Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and
(4) From principal to the extent that the tax exceeds the total receipts from the entity.
Deduction for payments made to beneficiary
(d) After applying subsections (a) through (c) 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.

Credits

Added by Acts 2000, c. 292, § 2, eff. Oct. 1, 2000. Amended by Acts 2012, c. 301, § 1, eff. Oct. 1, 2012; Acts 2012, c. 302, § 1, eff. Oct. 1, 2012.
MD Code, Estates and Trusts, § 15-527, MD EST & TRST § 15-527
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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