Section 555.703 – Undistributed Income.
555.703 Undistributed income. Sec. 303. (1) As used in this section, “undistributed income” means net income received before the date on which an income interest ends. 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 […]
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 […]
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 […]
Section 555.602 – Beneficiary’s Share of Net Income; Determination; Maintenance of Records by Fiduciary.
555.602 Beneficiary’s share of net income; determination; maintenance of records by fiduciary. Sec. 202. (1) Each beneficiary described in section 201(d) is entitled to receive a portion of the net income equal to the beneficiary’s fractional interest in undistributed principal assets, using values as of the distribution date. For purposes of this section, the fiduciary […]