A trustee may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries that arise from
(1) an election or decision that the trustee makes regarding tax matters;
(2) an income tax or any other tax that is imposed on the trustee or a beneficiary as a result of a transaction involving the trust or distribution from the trust; or
(3) the ownership by a trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the trust or a beneficiary.
Structure Alaska Statutes
Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions
Chapter 38. Alaska Principal and Income Act
Article 7. Allocation of Disbursements During Administration of Trust.
Sec. 13.38.800. Mandatory disbursements from income.
Sec. 13.38.810. Mandatory disbursements from principal.
Sec. 13.38.820. Discretionary allocation of expenses.
Sec. 13.38.830. Transfers to principal for depreciation.
Sec. 13.38.840. Transfers from income to reimburse principal.
Sec. 13.38.860. Adjustments between principal and income because of taxes.