The _____ rule under the Uniform Principal and Income Act (UPIA) states that the trust should be taxed on the balance left over after the trust has completed all payouts to beneficiaries.

Question

Quizplus · Accepted Answer

The conduit rule under the Uniform Principal and Income Act (UPIA) requires that the trust income passes through to the beneficiaries and is taxed at their individual tax rates. Therefore, the trust itself is not taxed on the income it receives.

The _____ Rule Under the Uniform Principal and Income Act