Allocating Dividend Income Between States When Received as Lump-Sum Distribution from a Trust

[RedFi]

As I understand it, part-year residents of two states who receive dividend or interest income allocate that income between the two states depending on where the individual was residing at the time the dividend or interest income was paid.  If, however, a trust beneficiary receive an annual lump-sum distribution of dividend and/or interest income from a trust (as reflected on a K-1), is that amount allocated between the two states based upon the date that the income initially accrued to the trust (i.e., before distribution to the beneficiary), or is it allocated based on the percentage of time spent in the respective states over the year? The reason I ask is that the K-1 form simply informs trust beneficiaries of the type of income being distributed, not the specifics of the date of when it was received by the trust. Any advice would be appreciated. Thanks!

[tagteam]

With respect to state income tax, the beneficiaries will report the distributions on their state returns at the time they receive the distributions (or are deemed to have received them).

[TomD8]

@tagteam is correct.  Per IRS Publication 538, dividends become taxable when the taxpayer has "constructive receipt" of the funds.  An individual is considered to be in "constructive receipt" of income when the income is credited to his account or made available to him without restriction. 

https://www.irs.gov/pub/irs-pdf/p538.pdf