§ 15-528. Adjustments between principal and income due to taxes
West's Annotated Code of MarylandEstates and Trusts
MD Code, Estates and Trusts, § 15-528
§ 15-528. Adjustments between principal and income due to taxes
Adjustments due to economic interests or tax benefits between income beneficiaries and remainder beneficiaries
(a) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from:
(b) A trustee shall make an adjustment from principal to income to compensate an income beneficiary for taxes paid or payable by the income beneficiary in respect of the taxable income of an entity that is taxable to the income beneficiary but that is distributed to the trustee and allocated to principal.
(c)(1) If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust, or beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid.
Credits
Added by Acts 2000, c. 292, § 2, eff. Oct. 1, 2000. Amended by Acts 2002, c. 478, § 1, eff. Oct. 1, 2002.
MD Code, Estates and Trusts, § 15-528, MD EST & TRST § 15-528
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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