18-C §7-446. Obligation to pay money
§7-446. Obligation to pay money 1. Interest on obligation to pay money; allocate to income. 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 […]
18-C §7-447. Insurance policies and similar contracts
§7-447. Insurance policies and similar contracts 1. Trust, trustee as beneficiary; allocate to principal. Except as otherwise provided in subsection 2, 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 […]
18-C §7-448. Insubstantial allocations not required
§7-448. Insubstantial allocations not required If a trustee determines that an allocation between principal and income required by section 7‑449, 7‑450, 7‑451, 7‑452 or 7‑455 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in section 7‑404, subsection 3 applies to the allocation. This power may be […]
18-C §7-449. Deferred compensation, annuities and similar payments
§7-449. Deferred compensation, annuities and similar payments 1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. “Payment” means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services […]
18-C §7-405. Power to convert to unitrust
§7-405. Power to convert to unitrust 1. Convert to unitrust; requirements. Unless expressly prohibited by the terms of the trust, a trustee may release the power to adjust under section 7‑404 and convert a trust into a unitrust as described in this section if all of the following apply: A. The trustee determines that […]
18-C §7-450. Liquidating asset
§7-450. Liquidating asset 1. Liquidating asset. As used in this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. “Liquidating asset” includes a leasehold, patent, copyright, royalty right and right to receive payments during a period of more […]
18-C §7-406. Judicial review of discretionary powers
§7-406. Judicial review of discretionary powers 1. Court determination of abuse of fiduciary’s discretion. A court may not change a fiduciary’s decision to exercise or not to exercise a discretionary power conferred by this Part unless it determines that the decision was an abuse of the fiduciary’s discretion. A court may not determine that a […]
18-C §7-451. Minerals, water and other natural resources
§7-451. Minerals, water and other natural resources 1. Allocation of receipts. 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: A. If received as nominal delay rental or nominal annual rent on a lease, […]
18-C §7-421. Determination and distribution of net income
§7-421. Determination and distribution of net income After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the provisions of this section apply. [PL 2017, c. 402, Pt. A, §2 (NEW); PL 2019, c. 417, Pt. B, §14 (AFF).] 1. Determination of net income and […]
18-C §7-452. Timber
§7-452. Timber 1. Allocation of net receipts. 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: A. To income to the extent the net receipts do not exceed the product of mean annual growth multiplied […]