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Beneficiaries usually have to pay tax on the income that they receive from the trust. Trusts are not subject to double taxation, so any taxable income distributed to the beneficiaries is deductible by the trust.
California is the seventh state to adopt the latest version of the UFIPA, joining Arkansas, Colorado, Kansas, Utah, Washington, and West Virginia. Missouri introduced legislation to adopt the UFIPA. (New York has enacted the 2000 Revision of the law.)
The Uniform Principal and Income Act (UPIA) was drafted in 1997 to provide trustees across the country with consistent standards for allocating trust funds. New York State (NYS), one of 39 states that adhere to the UPIA, adopted the standards in 2002.
The Texas Legislature has enacted two significant trust bills in 2003 ? the Uniform Prudent Investor Act of 1994 and the Uniform Principal and Income Act of 1997.
The following states have enacted in whole or in part the UPIA: Colorado (1995) Washington (1995) California (1995) New Mexico (1995) Oregon (1995) Oklahoma (1995) Utah (1995) Maryland (1995)
The Uniform Law Commissioners approved a revised Uniform Principal and Income Act in the Summer of 1997, and the Act is currently in different stages of the adoption process in various states. It has now been adopted in Arkansas, California, Connecticut, Iowa, North Dakota, Oklahoma, Virginia and West Virginia.