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 […]
Section 15-521 – Derivatives and Options
(a) In this section, “derivative” means a contract or financial instrument or a combination of contracts and financial instruments which 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 changes in a rate, an index of prices […]
Section 15-506 – 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 § 15–503(b) of this subtitle applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest. (b) (1) A trustee […]
Section 15-507 – Apportionment When Income Interest Ends
(a) (1) In this section, “undistributed income” means net income received before the date on which an income interest ends. (2) “Undistributed income” does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust. […]
Section 15-508 – Character of Receipts
(a) In this section, “entity” means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which § 15–509 of this subtitle applies, a business or activity to which § 15–510 of […]
Section 15-509 – Distribution From Trust or Estate
(a) 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 or estate. (b) If a trustee purchases […]
Section 15-510 – Separate Accounting Methods in 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 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 may maintain separate accounting records for its transactions, whether or […]
Section 15-511 – Principal Receipts
A trustee shall allocate to principal: (1) To the extent not allocated to income under this subtitle, 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 or other property received from […]
Section 15-512 – Rental Property
(a) 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. (b) An amount received as a refundable deposit, including a security deposit or […]