Sec. 13.38.650. Obligation to pay money.
(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, shall be allocated to income without any provision for amortization of premium. (b) A trustee shall allocate to principal an amount received […]
Sec. 13.38.660. Insurance policies and similar contracts.
(a) Except as otherwise provided in (b) or (c) of this section, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction […]
Sec. 13.38.670. Special rules for charitable remainder unitrusts.
Notwithstanding the other provisions of this chapter, if a charitable remainder unitrust, as defined in 26 U.S.C. 664 (Internal Revenue Code), owns an obligation described in (2) of this section, the following rules apply, unless varied by the governing instrument: (1) an obligation for the payment of money is principal at its inventory value except […]
Sec. 13.38.680. Insubstantial allocations not required.
If a trustee determines that an allocation between principal and income required by AS 13.38.690, 13.38.700, 13.38.710, 13.38.720, or 13.38.750 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in AS 13.38.210(c) applies to the allocation. This power may be exercised by a co-trustee in the circumstances […]
Sec. 13.38.690. Retirement benefits, individual retirement accounts, deferred compensation, annuities, and similar payments.
(a) A trustee shall allocate (1) to income that portion of a payment that equals the greater of the following: (A) the portion that the payor characterizes as interest, a dividend, a remittance in place of interest, or a remittance in place of a dividend; or (B) the portion that is characterized as imputed interest […]
Sec. 13.38.700. Liquidating assets.
(a) A trustee shall allocate 10 percent of the receipts from a liquidating asset to income and the balance to principal. (b) In this section, “liquidating asset” (1) means (A) an asset the value of which will diminish or terminate because the asset is expected to produce receipts for a period of limited duration; or […]