§ 2-3-831 — Adjustments between principal and income

Wyoming § 2-3-831

• Jurisdiction: Wyoming
• Title 02: Wills, Decedents' Estates and Probate Code
• Ch. 3: FIDUCIARIES
• Art. 8: PRINCIPAL AND INCOME

Text

(a) Subject to W.S. 2-3-826 and 2-3-827, a trustee may, in
the discretion of the trustee, allocate to income, principal or
partly to each, the ordinary expenses incurred in connection
with the administration, management or preservation of trust
property and the distribution of income including the
compensation of the trustee and of agents hired by the trustee
including investment advisors, custodians or income tax
preparation services.
(i) Repealed by Laws 2015, ch. 79, § 3.
(ii) Repealed by Laws 2015, ch. 79, § 3.
(iii) Repealed by Laws 2015, ch. 79, § 3.
(b) If the amount of an estate tax marital deduction or
charitable contribution deduction is reduced because a fiduciary
deducts an amount paid from principal for income tax purposes
instead of deducting it for estate tax purposes, and as a result
estate taxes paid from principal are increased and income taxes
paid by an estate, trust or beneficiary are decreased, each
estate, trust or beneficiary that benefits from the decrease in
income tax shall reimburse the principal from which the increase
in estate tax is paid. The total reimbursement must equal the
increase in the estate tax to the extent that the principal used
to pay the increase would have qualified for a marital deduction
or charitable contribution deduction but for the payment. The
proportionate share of the reimbursement for each estate, trust
or beneficiary whose income taxes are reduced must be the same
as its proportionate share of the total decrease in income tax.
An estate or trust shall reimburse principal from income.