§ 14-7407 – When right to income begins and ends
14-7407. When right to income begins and ends A. An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a […]
§ 14-7408 – Apportionment of receipts and disbursements when decedent dies or income interest begins
14-7408. Apportionment of receipts and disbursements when decedent dies or income interest begins A. A trustee shall allocate an income receipt or disbursement other than one to which section 14-7405, paragraph 1 applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest […]
§ 14-7409 – Apportionment when income interest ends; definition
14-7409. Apportionment when income interest ends; definition A. When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary’s share of the undistributed income that is not disposed of […]
§ 14-7410 – Character of receipts; definition
14-7410. Character of receipts; definition A. Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity. B. A trustee shall allocate the following receipts from an entity to principal: 1. Property other than money. 2. Money received in one distribution or a series of related distributions in […]
§ 14-7411 – Distribution from trust or estate
14-7411. Distribution from trust or estate A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest and shall allocate to principal an amount received as a distribution of principal from such a trust […]
§ 14-7412 – Business and other activities conducted by trustee
14-7412. Business and other activities conducted by trustee A. If a trustee who conducts a business or other activity determines that it is in the best interest of all of the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust’s general accounting records, the trustee […]
§ 14-7401 – Definitions
14-7401. Definitions In this article, unless the context otherwise requires: 1. " Accounting period" means a calendar year unless another twelve month period is selected by a fiduciary and includes a portion of a calendar year or other twelve month period that begins when an income interest begins or ends when an income interest ends. […]
§ 14-7402 – Fiduciary duties; general principles
14-7402. Fiduciary duties; general principles A. In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of sections 14-7405 through 14-7409, a fiduciary: 1. Shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is […]
§ 14-7403 – Trustee’s power to adjust
14-7403. Trustee’s power to adjust A. A trustee may adjust between principal and income to the extent the trustee considers necessary if the trustee invests and manages trust assets as a prudent investor, the terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust’s […]
§ 14-7404 – Judicial control of discretionary powers
14-7404. Judicial control of discretionary powers A. A court shall not change a fiduciary’s decision to exercise or not to exercise a discretionary power conferred by this article unless it determines that the decision was an abuse of the fiduciary’s discretion. A court shall not determine that a fiduciary abused its discretion merely because the […]