A trustee may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries that arise from
(1) an election or decision that the trustee makes regarding tax matters;
(2) an income tax or any other tax that is imposed on the trustee or a beneficiary as a result of a transaction involving the trust or distribution from the trust; or
(3) the ownership by a trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the trust or a beneficiary.
Section: Previous 13.38.800 13.38.810 13.38.820 13.38.830 13.38.840 13.38.850 13.38.860Last modified: November 15, 2016