§ 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 […]
§ 14-7428 – Transfers from income to reimburse principal
14-7428. Transfers from income to reimburse principal A. If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements. B. Principal disbursements […]
§ 14-7413 – Principal receipts
14-7413. Principal receipts A trustee shall allocate to principal: 1. To the extent not allocated to income under this article, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest or a payer under a contract naming the trust or its trustee as beneficiary. 2. Money […]
§ 14-7429 – Income taxes
14-7429. Income taxes A. A tax required to be paid by a trustee based on receipts allocated to income must be paid from income. B. A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by […]
§ 14-7414 – Rental property
14-7414. Rental property To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a […]
§ 14-7430 – Adjustments between principal and income because of taxes
14-7430. Adjustments between principal and income because of taxes A. A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries that arise from: 1. Elections and decisions, other than those described in subsection B, that the fiduciary makes from time […]
§ 14-7415 – Obligation to pay money
14-7415. 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, must be allocated to income without any provision for amortization of premium. B. A trustee shall allocate […]
§ 14-7431 – Proposed actions; notification; definition
14-7431. Proposed actions; notification; definition A. A trustee may, but is not required to, give notice of a proposed action regarding a matter governed by this article as provided in this section. B. The trustee shall mail notice of a proposed action, by certified, registered or ordinary first class mail, to all beneficiaries who are […]
§ 14-7416 – Insurance policies and similar contracts
14-7416. Insurance policies and similar contracts A. Except as otherwise provided in subsection B 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 […]
§ 14-7417 – Insubstantial allocations not required
14-7417. Insubstantial allocations not required If a trustee determines that an allocation between principal and income required by section 14-7418, 14-7419, 14-7420, 14-7421 or 14-7424 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in section 14-7403, subsection C applies to the allocation. This power may be […]