Uniform Principal and Income Act; trustee required to demand certain distributions if requested. (HB2435)
Introduced By
Del. Bill Janis (R-Glen Allen)
Progress
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Introduced |
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Passed Committee |
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Passed House |
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Passed Senate |
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Signed by Governor |
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Became Law |
Description
Uniform Principal and Income Act (UPIA). Revises the Act to address a 2006 IRS ruling regarding marital deductions to ensure that an IRA or other retirement arrangement that is payable to a marital deduction trust qualifies for the federal estate tax marital deduction. The trustee will be required to demand certain distributions if the surviving spouse so requests because the IRS requires that the surviving spouse be separately entitled to demand the funds income. The bill also clarifies how a trust that is required to pay income to a beneficiary keeps enough money to pay its taxes and distribute the balance of the income to the mandatory income beneficiary. Amends § 55-277.18 (“Deferred compensation, annuities, and similar payments.”), § 55-277.29 (“Income taxes.”), § 55-277.4:1 (“Total return unitrust.”), of the Code of Virginia. View Full Text »
