Section 15-515 – Insubstantial Allocations Not Required
(a) (1) If a trustee determines that an allocation between principal and income required by § 15-516, § 15-517, § 15-518, § 15-519, or § 15-522 of this subtitle is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in § 15-502.2(d) of this subtitle applies to the allocation. (2) This […]
Section 15-516 – Deferred Compensation, Annuities, and Similar Payments
(a) (1) In this section the following words have the meanings indicated. (2) (i) “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 rendered or property transferred to the payer in exchange for future payments. (ii) “Payment” includes: 1. A payment made in […]
Section 15-517 – Liquidating Asset
(a) (1) 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. (2) “Liquidating asset” includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than 1 year under an arrangement that does […]
Section 15-502.3 – Proposed Decision by Trustee
(a) In this section, “qualified beneficiary” means: (1) A person who, on the date that notice is given by the trustee in accordance with subsection (b) of this section: (i) Is a distributee or permissible distributee of the income or principal of the trust estate; (ii) Would be a distributee or permissible distributee of the income or principal of […]
Section 15-518 – 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 shall be allocated to income; (2) If received from a production payment, […]
Section 15-503 – Determination and Distribution of Net Income
(a) The rules in subsections (b) through (e) of this section apply: (1) In the case of an estate, after a decedent dies; or (2) After an income interest in a trust ends. (b) (1) A fiduciary of an estate or of a terminating income interest shall: (i) Determine the amount of net income and net principal receipts received from property […]
Section 15-519 – 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 timber during the accounting […]
Section 15-504 – Distribution to Residuary and Remainder Beneficiaries
(a) (1) Each beneficiary described in § 15–503(d) of this subtitle is entitled to receive a portion of the net income equal to the beneficiary’s fractional interest in undistributed principal assets, using values as of the distribution date. (2) If a fiduciary makes more than one distribution of assets to beneficiaries to whom this section applies, each beneficiary, […]
Section 15-520 – Property Not Productive of Income
(a) (1) 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 § 15-502.2(a) of this subtitle and distributes […]
Section 15-505 – When Right to Income Begins and Ends
(a) (1) An income beneficiary is entitled to net income from the date on which the income interest begins. (2) 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 trust or successive income interest. (b) An asset becomes subject […]