§ 14-7418 – Deferred compensation, annuities and similar payments; definition
14-7418. Deferred compensation, annuities and similar payments; definition A. To the extent that a payment is characterized as interest or a dividend, or a payment made in lieu of interest or a dividend, a trustee shall allocate it to income. The trustee shall allocate to principal the balance of the payment and any other payment […]
§ 14-7419 – Liquidating assets; definition
14-7419. Liquidating assets; definition A. A trustee shall allocate to income ten per cent of the receipts from a liquidating asset and the balance to principal. B. For the purposes of this section, " liquidating asset" : 1. Means an asset whose value will diminish or terminate because the asset is expected to produce receipts […]
§ 14-7420 – Minerals, water and other natural resources
14-7420. Minerals, water and other natural resources A. To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows: 1. If received as nominal delay rental or nominal annual rent on a lease, a receipt must be […]
§ 14-7421 – Timber
14-7421. Timber A. To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts: 1. To income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the […]
§ 14-7422 – Property not productive of income
14-7422. Property not productive of income A. If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under […]
§ 14-7423 – Derivatives and options; definition
14-7423. Derivatives and options; definition A. To the extent that a trustee does not account under section 14-7412 for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions. B. If a trustee grants an option to buy property from the trust, whether or not the […]
§ 14-7424 – Asset-backed securities; definition
14-7424. Asset-backed securities; definition A. If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment that the payer identifies as being from interest or other current return and shall allocate the balance of […]
§ 14-7425 – Disbursements from income
14-7425. Disbursements from income A trustee shall make the following disbursements from income to the extent that they are not disbursements to which section 14-7405, paragraph 2, subdivision (b) or (c) applies: 1. One-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee, whether […]
§ 14-7426 – Disbursements from principal
14-7426. Disbursements from principal A. A trustee shall make the following disbursements from principal: 1. The remaining one-half of the disbursements described in section 14-7425, paragraphs 1 and 2. 2. All of the trustee’s compensation calculated on principal as a fee for acceptance, distribution or termination and disbursements made to prepare property for sale. 3. […]
§ 14-7427 – Transfers from income to principal for depreciation; definition
14-7427. Transfers from income to principal for depreciation; definition A. A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation but may not transfer any amount for depreciation: 1. Of that portion of real property used or available for use by a […]