Section 555.804 – Principal; Allocations.
555.804 Principal; allocations. Sec. 404. A trustee shall allocate to principal all of the following: (a) To the extent not allocated to income under this act, 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 […]
Section 555.805 – Receipts From Rental Property.
555.805 Receipts from rental property. Sec. 405. 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. An amount received as a […]
Section 555.806 – Interest Received; Allocation to Income; Proceeds of Sale; Allocation to Principal.
555.806 Interest received; allocation to income; proceeds of sale; allocation to principal. Sec. 406. (1) 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, shall be allocated to income without any provision […]
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 […]