Taxability of Estates, Trusts and Their Beneficiaries
(a)Except as provided in subsection (b), the income of a…#
(a) Except as provided in subsection (b), the income of a beneficiary of an estate or trust in respect of such estate or trust shall consist of that part of the income or gains received by the estate or trust for its taxable year ending within or with the beneficiary's taxable year which, under the governing instrument and applicable State law, is required to be distributed currently or is in fact paid or credited to said beneficiary. The income or gains of the estate or trust, if any, taxable to such estate or trust shall consist of the income or gains received by it which has not been distributed or credited to its beneficiaries.
(b)Subsection (a) shall not apply to the extent the…#
(b) Subsection (a) shall not apply to the extent the grantor or another person is taxable on the income of the trust under section 302(c).
(305 amended Dec. 14, 2023, P.L., No.64) Compiler's Note: Section 2(1) of Act 64 of 2023, which amended section 305, provided that the amendment shall apply to tax years beginning on or after January 1 following the effective date of section 2.