CaliforniaIncomplete gift nongrantor trusts: Personal Income Tax Law.
What it does
Existing law, the Personal Income Tax Law, in partial conformity with federal income tax law, imposes a tax on the taxable income of estates or of any kind of property held in trust. That law provides the taxable income of an estate or trust is computed in the same manner as in the case of an individual, except as provided, and the tax is paid by the fiduciary of the trust or estate. Existing law provides that, where the grantor or another person is treated as the owner of any portion of the trust, known as a "grantor trust," then items of income, deductions, and credits against tax of the trust are included in computing the taxable income and credits of the grantor or other owner.
More detail
Existing law, for taxable years beginning on or after January 1, 2023, includes the income of an incomplete gift nongrantor trust, as defined, in the gross income of the grantor to the extent the income of the trust would be taken into account in computing the grantor's taxable income if the trust were treated as a grantor trust, except as provided.
This bill would amend the definition of incomplete gift nongrantor trust to specifically exclude a trust, or portion of a trust, that qualifies as a charitable remainder trust, as specified. The bill would include findings and declarations that this change does not constitute a change in, but is declaratory of, existing law.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Oct 6Chaptered by Secretary of State. Chapter 410, Statutes of 2025.Latest
- Oct 6Approved by the Governor Gavin Newsom.Became Law
- Sep 22Enrolled and presented to the Governor at 2 p.m.To Governor
- Sep 11Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2882.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB376 Valladares Concurrence. Result: pass.Upper
- Sep 10In Senate. Concurrence in Assembly amendments pending.
- Vote recorded SB 376 Valladares Senate Third Reading By Quirk-Silva. Result: pass.Lower
- Sep 10Read third time. Passed. (Ayes 79. Noes 0. Page 3170.) Ordered to the Senate.Passed Assembly
- Aug 19Read second time. Ordered to third reading.Minor
- Aug 18Ordered to second reading.Minor
- Aug 18Withdrawn from committee.Major
- Jul 15Read second time and amended. Re-referred to Com. on APPR.Major
- Jul 14From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 7).Major
- Jul 7
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jul 1June 30 hearing postponed by committee.
- Jun 9Referred to Com. on REV. & TAX.Minor
- Jun 3In Assembly. Read first time. Held at Desk.Minor
- Jun 2Read third time. Passed. (Ayes 38. Noes 0. Page 1387.) Ordered to the Assembly.Passed Senate
- Vote recorded 3rd Reading. Result: pass.Upper
- May 20Read second time. Ordered to third reading.Minor
- May 19From committee: Be ordered to second reading pursuant to Senate Rule 28.8.Minor
- May 15Set for hearing May 19.
- May 14From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 1082.) (May 14). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Mar 18Set for hearing May 14.
- Feb 26Referred to Com. on REV. & TAX.Minor
- Feb 14From printer. May be acted upon on or after March 16.
- Feb 13Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced