If for any reason the taxes imposed on income of a trust are not paid when due and remain unpaid when such income is distributable to the beneficiaries, or if the income is distributable to the beneficiaries before the taxes are due and the taxes are not paid when due, such income shall be taxable to the beneficiaries when distributable to them, except that in the case of nonresident beneficiaries such income shall be taxable only to the extent it is derived from sources within this state.
A.R.S. § 43-1315
Liability of beneficiaries for trust taxes
Official source: Arizona State Legislature. Reproduced from public-domain Arizona statutes; confirm against the official source for the current text. Not legal advice.