| (1) |
A share of the fiduciary adjustments described in Subsection (2) shall be added to or subtracted from unadjusted income:
Terms Used In Utah Code 59-10-210- 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
- Distributable net income: means the same as that term is defined in Section 643, Internal Revenue Code. See Utah Code 59-10-103
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: means :
| (vii) | any person acting in any fiduciary capacity for any individual. See Utah Code 59-10-103- nonresident estate: means a trust or estate which is not a resident estate or trust. See Utah Code 59-10-103
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
- Unadjusted income: means an amount equal to the difference between:
| (i) | the total income required to be reported by a resident or nonresident estate or trust on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year; and |
| (ii) | the sum of the following:| (A) | fees paid or incurred to the fiduciary of a resident or nonresident estate or trust:| (I) | for administering the resident or nonresident estate or trust; and |
| (II) | that the resident or nonresident estate or trust deducts as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year; |
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| (B) | the income distribution deduction that a resident or nonresident estate or trust deducts under Section 651 or 661, Internal Revenue Code, as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year; |
| (C) | the amount that a resident or nonresident estate or trust deducts as a deduction for estate tax or generation skipping transfer tax under Section 691(c), Internal Revenue Code, as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year; and |
| (D) | the amount that a resident or nonresident estate or trust deducts as a personal exemption under Section 642(b), Internal Revenue Code, as allowed on the resident or nonresident estate's or trust's federal income tax return for estates and trusts for the taxable year. See Utah Code 59-10-103 |
| (a) |
of:
| (i) |
a resident or nonresident estate or trust; or |
| (ii) |
a resident or nonresident beneficiary of a resident or nonresident estate or trust; and |
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| (b) |
as provided in this section. |
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| (2) |
For purposes of Subsection (1), the fiduciary adjustments are the following amounts:
| (a) |
the additions to and subtractions from unadjusted income of a resident or nonresident estate or trust required by Section 59-10-202; and |
| (b) |
a tax credit claimed by a resident or nonresident estate or trust as allowed by:
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| (3) |
| (a) |
The respective shares of an estate or trust and its beneficiaries, including for the purpose of this allocation a nonresident beneficiary, in the state fiduciary adjustments, shall be allocated in proportion to their respective shares of federal distributable net income of the estate or trust. |
| (b) |
If the estate or trust described in Subsection (3)(a) has no federal distributable net income for the taxable year, the share of each beneficiary in the fiduciary adjustments shall be allocated in proportion to that beneficiary’s share of the estate or trust income for the taxable year that is, under state law or the governing instrument, required to be distributed currently plus any other amounts of that income distributed in that taxable year. |
| (c) |
After making the allocations required by Subsections (3)(a) and (b), any balance of the fiduciary adjustments shall be allocated to the estate or trust. |
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| (4) |
| (a) |
The commission shall allow a fiduciary to use a method for determining the allocation of the fiduciary adjustments described in Subsection (2) other than the method described in Subsection (3) if using the method described in Subsection (3) results in an inequity:
| (i) |
in allocating the fiduciary adjustments described in Subsection (2); and |
| (ii) |
if the inequity is substantial:
| (B) |
in relation to the total amount of the fiduciary adjustments described in Subsection (2). |
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| (b) |
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules authorizing a fiduciary to use a method for determining the allocation of the fiduciary adjustments described in Subsection (2) other than the method described in Subsection (3) if using the method described in Subsection (3) results in an inequity:
| (i) |
in allocating the fiduciary adjustments described in Subsection (2); and |
| (ii) |
if the inequity is substantial:
| (B) |
in relation to the total amount of the fiduciary adjustments described in Subsection (2). |
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Amended by Chapter 247, 2019 General Session
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