Vermont § 3343 - Apportionment when income interest ends

§ 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.)