(a)

1. (1) A fiduciary return (AR1002F) is used to report the income of an estate or trust.
2. (2) The income received by an estate or trust will be considered attributable to Arkansas when the estate or trust's trustee, administrator, executor, or personal representative is a resident of Arkansas.
3. (3) Likewise, the income received by an estate or trust shall be attributable to Arkansas when the estate or trust is physically located within Arkansas.

4. (4) As such, a fiduciary return must be filed by every resident (AR1002) and nonresident (AR1002NR) fiduciary under the following circumstances:

   1. (A) Any income of such estate or trust is currently distributable;
   2. (B) The tax is payable by the beneficiaries or by the grantor;
   3. (C) The net income of such estate or trust is three thousand dollars ($3,000) or over; or
   4. (D) Any beneficiary of such estate or trust is a nonresident.

(b) Pursuant to Arkansas Code § 26-51-201(b) and (c), a limited exemption from Arkansas income tax has been established for resident fiduciaries under the following circumstances:

1. (1) The trust or estate was created by a nonresident individual; or
2. (2) The beneficiary of a trust is a nonresident.