[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.652(c)-2]

[Page 101]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.652(c)-2  Death of individual beneficiaries.

    If income is required to be distributed currently to a beneficiary, 
by a trust for a taxable year which does not end with or within the last 
taxable year of a beneficiary (because of the beneficiary's death), the 
extent to which the income is included in the gross income of the 
beneficiary for his last taxable year or in the gross income of his 
estate is determined by the computations under section 652 for the 
taxable year of the trust in which his last taxable year ends. Thus, the 
distributable net income of the taxable year of the trust determines the 
extent to which the income required to be distributed currently to the 
beneficiary is included in his gross income for his last taxable year or 
in the gross income of his estate. (Section 652(c) does not apply to 
such amounts.) The gross income for the last taxable year of a 
beneficiary on the cash basis includes only income actually distributed 
to the beneficiary before his death. Income required to be distributed, 
but in fact distributed to his estate, is included in the gross income 
of the estate as income in respect of a decedent under section 691. See 
paragraph (e) of Sec. 1.663(c)-3 with respect to separate share 
treatment for the periods before and after the decedent's death. If the 
trust does not qualify as a simple trust for the taxable year of the 
trust in which the last taxable year of the beneficiary ends, see 
section 662(c) and Sec. 1.662(c)-2.