ORS 129.425
UPIA 506. Adjustments between principal and income because of taxes


(1)

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:

(a)

Elections and decisions, other than those described in subsection (2) of this section, that the fiduciary makes from time to time regarding tax matters;

(b)

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

(c)

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.

(2)

If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust or beneficiary are decreased, each estate, trust or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each estate, trust or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income. [2003 c.279 §30]

Source: Section 129.425 — UPIA 506. Adjustments between principal and income because of taxes, https://www.­oregonlegislature.­gov/bills_laws/ors/ors129.­html.

129.200
UPIA 101. Short title
129.205
UPIA 102. Definitions
129.210
UPIA 103. Fiduciary duties
129.215
UPIA 104. Trustee’s power to adjust
129.220
UPIA 105. Judicial control of discretionary power
129.225
Conversion to unitrust
129.250
UPIA 201. Determination and distribution of net income
129.255
UPIA 202. Distribution to residuary and remainder beneficiaries
129.270
UPIA 301. When right to income begins and ends
129.275
UPIA 302. Apportionment of receipts and disbursements when decedent dies or income interest begins
129.280
UPIA 303. Apportionment when income interest ends
129.300
UPIA 401. Character of receipts
129.305
UPIA 402. Distribution from trust or estate
129.308
UPIA 403. Business and other activities conducted by trustee
129.310
UPIA 404. Principal receipts
129.315
UPIA 405. Rental property
129.320
UPIA 406. Obligation to pay money
129.325
UPIA 407. Insurance policies and similar contracts
129.350
UPIA 408. Insubstantial allocations not required
129.355
UPIA 409. Deferred compensation, annuities and similar payments
129.360
UPIA 410. Liquidating asset
129.365
UPIA 411. Minerals, water and other natural resources
129.370
UPIA 412. Timber
129.375
UPIA 413. Property not productive of income
129.380
UPIA 414. Derivatives and options
129.385
UPIA 415. Asset-backed securities
129.400
UPIA 501. Disbursements from income
129.405
UPIA 502. Disbursements from principal
129.410
UPIA 503. Transfers from income to principal for depreciation
129.415
UPIA 504. Transfers from income to reimburse principal
129.420
UPIA 505. Income taxes
129.425
UPIA 506. Adjustments between principal and income because of taxes
129.450
UPIA 601. Uniformity of application and construction
Green check means up to date. Up to date