§ 26-51-406 - Income to beneficiaries of trusts and estates.
26-51-406. Income to beneficiaries of trusts and estates.
(a) Every individual, taxable under this act, who is a beneficiary of an estate or trust shall include in his gross income the distributive share of the income or loss of the estate or trust received by him or distributable to him during the income year.
(b) Unless otherwise provided in the law or the will, the deed, or other instrument creating the estate, trust, or fiduciary relationship, the net income shall be deemed to be distributed or distributable to the beneficiaries, including the fiduciary as a beneficiary, in the case of income accumulated for future distribution, ratably in proportion to their respective interests.
(c) Any excess losses accumulated by the estate or trust at the time of the termination of the estate or trust shall be distributable to the beneficiaries ratably and claimed by the beneficiaries on the individual Arkansas income tax returns as otherwise provided by this act.