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Arkansas Code Title 26. Taxation § 26-51-446. Long-term intergenerational trusts

Current as of March 28, 2024 | Updated by Findlaw Staff

(a)(1) All distributions of funds other than principal from the long-term intergenerational trust shall be taxable as provided in the Income Tax Act of 1929, § 26-51-101 et seq.

(2) All distributions from the long-term intergenerational trust shall be deemed principal until all contributions of principal have been withdrawn.

(b)(1) In addition to any income tax imposed for distributions from the long-term intergenerational trust as provided in subsection (a) of this section, there is hereby imposed a twenty percent (20%) penalty on all distributions from the long-term intergenerational trust in violation of this section or the Long-Term Intergenerational Security Act of 1995, § 28-72-501 et seq.

(2) The penalty shall be collected by the Department of Finance and Administration and shall be deposited into the State Treasury as general revenue.

(c) A beneficiary must file a copy of the long-term intergenerational security trust agreement with his or her income tax return for each taxable year the beneficiary claims the tax benefits provided in this section and the Long-Term Intergenerational Security Act of 1995, § 28-72-501 et seq.

(d) Upon the death of the beneficiary, all funds remaining in the long-term intergenerational security trust shall be distributed to the beneficiary's estate, and all undistributed income shall be included in the beneficiary's final tax return.

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Cite this article: FindLaw.com - Arkansas Code Title 26. Taxation § 26-51-446. Long-term intergenerational trusts - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-26-taxation/ar-code-sect-26-51-446/

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