N.Y. Estates, Powers & Trusts Law § 11-a-5.6: Adjustments between principal and income because of taxes

§ 11-A-5.6 Adjustments between principal and income because of taxes

A fiduciary may make adjustments between principal and income to

offset the shifting of economic interests or tax benefits between income

beneficiaries and remainder beneficiaries which arise from:

(1) elections and decisions that the fiduciary makes from time to time

regarding tax matters;

(2) an income tax or any other tax that is imposed upon the fiduciary

or a beneficiary as a result of a transaction involving or a

distribution from the estate or trust; or

(3) the ownership by an estate or trust of an interest in an entity

whose taxable income, whether or not distributed, is includable in the

taxable income of the estate, trust, or a beneficiary.