The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
003
:
APPORTIONMENT AT BEGINNING AND END OF INCOME INTEREST
(Cite as: 14 V.S.A. § 3343)
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§ 3343. Apportionment when income interest ends
(a) As used 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 percent 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. (Added 2011, No. 114 (Adj. Sess.), § 1.)