Estates and trusts.

(1) General. Certain estates and all trusts are required, in order to avoid the addition to tax referred to in subdivision (a) of this section, to make estimated tax payments in the same manner as individuals.

(2) Estates. This section shall apply to an estate only with respect to any taxable year ending two or more years after the date of the decedent's death.

(3) Trusts.

(i) The trustee may elect to treat any amount of estimated tax payments made by the trust for any taxable year of the trust as a payment made by a beneficiary or beneficiaries where the following conditions are met:

(a) the payments of estimated tax made by the trust for the taxable year exceed the tax shown as due on such trust's return for the same taxable year; and

(b) such election is made on the New York State fiduciary income tax return of such trust that is filed within 65 days after the end of the taxable year for which the election is being made.

(ii) Where the election in subparagraph (i) of this paragraph is made, the beneficiary who is treated as making the estimated tax payment is deemed to receive a distribution on the last day of the trust's taxable year, and is deemed to make a payment of estimated tax on the January 15th following the end of such beneficiary's taxable year in which such payment was made.