Current as of January 01, 2019 | Updated by FindLaw Staff
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1. Tax based on receipts allocated to income. A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.
2. Tax based on receipts allocated to principal. A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.
3. Tax on trust's share of entity's taxable income. A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:
A. From income to the extent that receipts from the entity are allocated only to income;
B. From principal to the extent that receipts from the entity are allocated only to principal;
C. Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and
D. From principal to the extent that the tax exceeds the total receipts from the entity.
4. Adjustments because of deduction for payments to beneficiary. After applying subsections 1 to 3, 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.
Cite this article: FindLaw.com - Maine Revised Statutes Title 18-C. Probate Code § 7-465. Income taxes - last updated January 01, 2019 | https://codes.findlaw.com/me/title-18-c-probate-code/me-rev-st-tit-18-c-sect-7-465/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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