Section 555.807 – Life Insurance Proceeds; Other Contracts; Allocations.
555.807 Life insurance proceeds; other contracts; allocations. Sec. 407. (1) Except as otherwise provided in subsection (2), a trustee shall 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 […]
Section 555.808 – Insubstantial Allocation.
555.808 Insubstantial allocation. Sec. 408. If a trustee determines that an allocation between principal and income required by section 409, 410, 411, 412, or 415 is insubstantial, the trustee may allocate the entire amount to principal unless 1 or more of the circumstances described in section 104(4) apply to the allocation. This power may be […]
Section 555.801 – “Entity” Defined; Allocation to Income Money Received; Allocation of Receipts to Principal; Money Received in Partial Liquidation; Limitation; Statement by Entity on Source or Character of Distribution.
555.801 “Entity” defined; allocation to income money received; allocation of receipts to principal; money received in partial liquidation; limitation; statement by entity on source or character of distribution. Sec. 401. (1) As used in this section, “entity” means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or […]
Section 555.802 – Income; Principal; Allocation of Amounts Received as Distributions From Trust or Purchased Interest.
555.802 Income; principal; allocation of amounts received as distributions from trust or purchased interest. Sec. 402. 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 […]
Section 555.803 – Separate Accounting for Business or Other Activity.
555.803 Separate accounting for business or other activity. Sec. 403. (1) 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 […]