18-C §7-454. Derivatives and options
§7-454. Derivatives and options 1. Derivative. As used in this section, “derivative” means a contract or financial instrument or a combination of contracts and financial instruments that gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or […]
18-C §7-455. Asset-backed securities
§7-455. Asset-backed securities 1. Asset-backed security. As used in this section, “asset-backed security” means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. “Asset-backed security” includes an asset that gives the owner the right to receive […]
18-C §7-443. Business and other activities conducted by trustee
§7-443. Business and other activities conducted by trustee 1. Separate accounting for business or other activity. If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the […]
18-C §7-444. Principal receipts
§7-444. Principal receipts A trustee shall allocate to principal: [PL 2017, c. 402, Pt. A, §2 (NEW); PL 2019, c. 417, Pt. B, §14 (AFF).] 1. Assets received. To the extent not allocated to income under this Part, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a […]
18-C §7-445. Rental property
§7-445. 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 […]
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 §7-450. 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 […]