A. A tax required to be paid by a fiduciary that is based on receipts allocated to income must be paid from income.

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Terms Used In Virginia Code 64.2-1069

  • Accounting period: includes a part of a calendar year or another period of 12 calendar months or approximately 12 calendar months that begins when an income interest begins or ends when an income interest ends. See Virginia Code 64.2-1033
  • Fiduciary: A trustee, executor, or administrator.
  • Fiduciary: includes a trustee, trust director under the Uniform Directed Trust Act (§ Virginia Code 64.2-1033
  • Income: includes a part of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in Articles 4 (§ 64.2-1067, 64.2-1068, and 64.2-1070, a tax required to be paid by a fiduciary on a share of an entity’s taxable income in an accounting period must be paid from:

    1. Income and principal proportionately to the allocation between income and principal of receipts from the entity in the period; and

    2. Principal, to the extent the tax exceeds the receipts from the entity in the period.

    D. After applying subsections A, B, and C, a fiduciary shall adjust income or principal receipts, to the extent the taxes the fiduciary pays are reduced because of a deduction for a payment made to a beneficiary.

    2022, c. 354.