California Governor Signs Law Regarding Trust Income Provisions Establishing Uniform Fiduciary Income, Principal Act

The California Governor June 29 signed a law repealing the Uniform Principal and Income Act and enacting the Uniform Fiduciary Income and Principal Act for trust income tax purposes. The law includes measures: 1) listing special tax benefits for trusts or estates as provided under the Internal Revenue Code, including the exclusion of a transfer to trusts from gifts, the status as a qualified subchapter S trust, and an estate or gift tax marital deduction for a transfer to trusts; 2) requiring that taxes paid by fiduciaries based on receipts allocated to income must be paid from income; 3) requiring ...