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 […]
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 […]