Section 3402-202 - Estates and trustsA. The tax imposed by this act shall apply to estates and trusts which tax shall be levied, collected and paid annually upon and with respect to the income of estates or of any kind of property held in trust including: (1) Income received by estates of deceased persons during the period of administration or settlement of the estate;(2) Income accumulated in trust for the benefit of unborn or unascertained persons or persons with contingent interests;(3) Income held for future distribution under the terms of the will or trust;(4) Income which is to be distributed to the beneficiaries periodically, whether or not at regular intervals, and the income collected by a guardian of an infant to be held or distributed as the court may direct; and(5) Income of an estate during the period of administration or settlement permitted by subsection C of this section to be deducted from the net income upon which the tax is to be paid by the fiduciary.B. The fiduciary shall be responsible for making the return of income for the estate or trust for which he acts whether such income be taxable to the estate or trust or to the beneficiaries thereof. The net income of an estate or trust shall be computed in the same manner and on the same basis as provided for individual taxpayers, and in cases under paragraphs (four) and (five) of subsection A of this section the fiduciary shall include in the return a statement of each beneficiary's distributive share of such net income, whether or not distributed before the close of the tax year for which the return is made.C. In cases under paragraphs (one), (two) and (three) of subsection A of this section, the tax shall be imposed upon the estate or trust with respect to the net income of the estate or trust and shall be paid by the fiduciary, except that in determining the net income of the estate of any deceased person during the period of administration or settlement there may be deducted the amount of any income properly paid or credited to any legatee, heir or other beneficiary. In such cases the estate or trust shall be allowed the same personal deductions as are allowed to single persons under section three hundred and eight, and in such cases an estate or trust created by a person not a resident, and an estate of a person not a resident, shall be subject to tax only to the extent to which individuals, other than residents, are liable, by reason of the limitation as to gross income provided in section three hundred and three, subsection C. D. In cases under paragraphs (four) and (five) of subsection A of this section, if the distribution of income is in the discretion of the fiduciary, either as to the beneficiaries to whom payable, or as to the amounts to which any beneficiary is entitled, the tax shall be imposed upon the estate or trust in the manner provided in subsection C of this section, but without the deduction of any amounts of income paid or credited to any such beneficiary. In all other cases under paragraphs (four) and (five) of subsection A of this section, the tax shall not be paid by the fiduciary but there shall be included, in computing the net income of each beneficiary, his distributive share, whether distributed or not, of the net income of the estate or trust for the tax year. In such cases the net income of a beneficiary not a resident derived through such estate or trust shall be subject to tax only to the extent to which individuals, other than residents are liable, by reason of the limitations as to gross income provided in section three hundred and three, subsection C.E. A trust created by an employer as a part of a stock bonus pension or profit-sharing plan for the exclusive benefit of some, or all, of his employes to which contributions are made by such employer or employes, or both, for the purpose of distributing to such employes the earnings and principal of the fund accumulated by the trust in accordance with such plan, shall not be taxable under this section but any amount actually distributed, or made available to any distributee, shall be taxable to him in the year in which so distributed or made available to the extent that it exceeds the amounts paid in by him.F. Where any part of the income of a trust, other than a testamentary trust, is, or may be, applied to the payment of premiums upon policies of insurance on the life of the grantor, or to the payment of premiums upon policies of life insurance under which the grantor is the beneficiary, such part of the income of the trust shall be included in computing the net income of the grantor.1935, July 12, P.L. 970, No. 314, art. II, § 202.