Section 15-522 – Asset-Backed Securities
(a) (1) 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. (2) “Asset-backed security” includes an asset that gives the owner the right to receive from the collateral financial assets only the interest […]
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 15-516 – 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 […]