Section 555.809 – Definitions; Payment Allocation.
555.809 Definitions; payment allocation. Sec. 409. (1) As used in this section: (a) “Payment” means a payment that a trustee may receive over a fixed number of years or during the life of 1 or more individuals because of services rendered or property transferred to the payer in exchange for future payments. The term includes […]
Section 555.810 – Liquidating Asset; Allocation of Receipts.
555.810 Liquidating asset; allocation of receipts. Sec. 410. (1) As used 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. Liquidating asset includes a leasehold, patent, copyright, royalty right, and right to receive payments during a […]
Section 555.811 – Receipts From Minerals, Water, or Other Natural Resources; Allocations.
555.811 Receipts from minerals, water, or other natural resources; allocations. Sec. 411. (1) Except as provided in subsection (4), 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: (a) If received as nominal delay rental […]
Section 555.812 – Net Receipts From Sale of Timber; Allocations.
555.812 Net receipts from sale of timber; allocations. Sec. 412. (1) Except as provided in subsection (4), 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 as follows: (a) To income to the extent that the […]
Section 555.813 – Marital Deduction; Insufficient Income From or Use of Trust Assets; Actions to Be Taken by Trustee.
555.813 Marital deduction; insufficient income from or use of trust assets; actions to be taken by trustee. Sec. 413. (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, […]
Section 555.814 – Derivative Transactions; Gain or Loss Realized From Exercise of Option; Allocations.
555.814 Derivative transactions; gain or loss realized from exercise of option; allocations. Sec. 414. (1) As used in this section, “derivative” means a contract or financial instrument or a combination of contracts and financial instruments that gives a trust the right or obligation to participate in some or all changes in the price of a […]
Section 555.815 – Asset-Backed Security; Allocation of Payments.
555.815 Asset-backed security; allocation of payments. Sec. 415. (1) As used 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. Asset-backed security includes an asset that gives the owner the […]
Section 555.901 – Income Disbursements.
555.901 Income disbursements. Sec. 501. A trustee shall make the following disbursements from income to the extent that they are not disbursements to which section 201(b)(ii) or (iii) applies: (a) One-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee. (b) One-half of all […]
Section 555.902 – Principal Disbursements.
555.902 Principal disbursements. Sec. 502. (1) A trustee shall make the following disbursements from principal: (a) The remaining 1/2 of the disbursements described in section 501(a) and (b). (b) All of the trustee’s compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale. (c) Payments […]
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 […]