Terms Used In Louisiana Revised Statutes 9:2156.2

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
  • Trustee: A person or institution holding and administering property in trust.

            A. A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income.

            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 denominated an income tax by the taxing authority.

            C. A tax required to be paid by a trustee on the trust’s share of a juridical person‘s taxable income shall be paid as follows:

            (1) From income to the extent that receipts from the juridical person are allocated only to income.

            (2) From principal to the extent that receipts from the juridical person are allocated only to principal.

            (3) Proportionately from principal and income to the extent that receipts from the juridical person are allocated to both income and principal.

            (4) From principal to the extent that the tax exceeds the total receipts from the juridical person.

            D. After applying the provisions 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.

            Acts 2020, No. 17, §1, eff. Jan. 1, 2021.