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 […]
Section 15-513 – Obligation to Pay Money
(a) 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 for amortization of premium. (b) (1) A trustee shall allocate to principal an amount received from the […]
Section 15-514 – Insurance Policies and Similar Contracts
(a) Except as provided in subsection (b) of this section, a trustee shall: (1) 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 or its trustee against loss for damage to, destruction of, or loss […]
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 15-502.1 – Conversion of Trust Into Unitrust
(a) A trustee may convert a trust into a unitrust as described in this section if: (1) The trustee receives a written request from a beneficiary to exercise the power conferred by this subsection to convert to a unitrust; (2) The trustee invests and manages the trust assets in the manner set forth in § 15–114(b) and (c) […]