Missouri Laws 469.459 – Taxes to be paid from income or principal, when
1. A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income.
2. 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 called an income tax by the taxing authority.
Terms Used In Missouri Laws 469.459
- 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
- Trustee: A person or institution holding and administering property in trust.
3. A tax required to be paid by a trustee on the trust’s share of an entity’s taxable income shall be paid:
(1) From income to the extent that receipts from the entity are allocated to income; and
(2) From principal to the extent that receipts from the entity are allocated only to principal.
4. After applying subsections 1 to 3 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 payment made to a beneficiary.