Delaware § 61-505 Income taxes

Delaware Statutes

§ 61-505 — Income taxes

Delaware § 61-505

JurisdictionDelaware

Title12

PartAllocation of Principal and Income

Ch. 61DELAWARE UNIFORM PRINCIPAL AND INCOME ACT

Subch.Allocation of Disbursements During Administration of Trust

This text of Delaware § 61-505 (Income taxes) is published on Counsel Stack Legal Research, covering Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Del. Code tit. 12, § 61-505 (2026).

Text

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

(b)A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.

(c)A tax required to be paid by a trustee on the trust’s share of an entity’s taxable income must be paid:

(1)From income to the extent that receipts from the entity are allocated only to income;

(2)From principal to the extent that receipts from the entity are allocated only to principal;

(3)Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and

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

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

(b) A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.

(c) A tax required to be paid by a trustee on the trust’s share of an entity’s taxable income must be paid:

(1) From income to the extent that receipts from the entity are allocated only to income;

(2) From principal to the extent that receipts from the entity are allocated only to principal;

(3) Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and

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

(d) After applying subsections (a) through (c) 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.