Definitions related to trusts and estates; rules

# (1)

As used in this chapter:

# (a)

“Qualified funeral trust” has the meaning given that term in section 685 of the Internal Revenue Code.

# (b)

“Resident estate” means an estate of which the fiduciary is appointed by an Oregon court or the administration of which is carried on in Oregon.

# (c)

“Resident funeral trust” means a qualified funeral trust that, at the time of the initial funding of the trust:

(A) Is required to be established under the laws of this state; or

(B) Is established by a contract, the terms of which state that a service or merchandise is to be provided by a funeral home or cemetery located in this state.

# (d)

“Resident trust” means a trust, other than a qualified funeral trust, of which the fiduciary is a resident of Oregon or the administration of which is carried on in Oregon. In the case of a fiduciary that is a corporate fiduciary engaged in interstate trust administration, the residence and place of administration of a trust both refer to the place where the majority of fiduciary decisions are made in administering the trust.

# (2)

The taxable income of a resident estate, resident trust or resident funeral trust is its federal taxable income modified by the addition or subtraction, as the case may be, of its share of the fiduciary adjustment determined under ORS 316.287.

# (3)

The Department of Revenue shall adopt rules defining “trust administration” for purposes of subsection (1)(d) of this section that include within the definition activities related to fiduciary decision making and that exclude from the definition activities related to incidental execution of fiduciary decisions.

# (4)

The department shall adopt rules providing for simplified reporting of resident funeral trusts having a single trustee and of resident funeral trusts that are terminated during the tax year.