Sec. 45a-542h. Apportionment when income interest ends.
Sec. 45a-542h. Apportionment when income interest ends. (a) In this section,
"undistributed income" means net income received before the date on which an income
interest ends. The term does not include an item of income or expense that is due or
accrued or net income that has been added or is required to be added to principal under
the terms of the trust.
(b) When a mandatory income interest ends, the trustee shall pay to a mandatory
income beneficiary who survives that date, or the estate of a deceased mandatory income
beneficiary whose death causes the interest to end, the beneficiary's share of the undistributed income that is not disposed of under the terms of the trust unless the beneficiary
has an unqualified power to revoke more than five per cent of the trust immediately
before the income interest ends. In the latter case, the undistributed income from the
portion of the trust that may be revoked must be added to principal.
(c) When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value
of the trust's assets ends, the trustee shall prorate the final payment if and to the extent
required by applicable law to accomplish a purpose of the trust or its settlor relating to
income, gift, estate or other tax requirements.
(P.A. 99-164, S. 9, 36.)
History: P.A. 99-164 effective January 1, 2000.