501C.1101 DEFINITIONS. Subdivision 1. Scope. The definitions in this section apply to sections 501C.1101 to 501C.1118. Subd. 2. Accounting period. “Accounting period” means a calendar year unless another 12-month period is selected by the trustee. Accounting period includes a portion of a calendar year or other 12-month period that begins when an income interest begins […]
501C.1102 DUTY OF TRUSTEE AS TO RECEIPTS AND EXPENDITURE. Subdivision 1. General rules of administration. A trust must be administered with due regard to the respective interests of income beneficiaries and remainderpersons. A trust is so administered with respect to the allocation of receipts and expenditures if a receipt is credited or an expenditure is […]
501C.1103 INCOME; PRINCIPAL; CHARGES. Subdivision 1. Income defined. “Income” means the return in money or property derived from the use of principal, including return received as: (1) rent of real or personal property, including sums received for cancellation or renewal of a lease; (2) interest on money lent, including sums received as consideration for the […]
501C.1104 WHEN RIGHT TO INCOME ARISES; APPORTIONMENT OF INCOME. Subdivision 1. General rule. An income beneficiary is entitled to income from the date specified in the trust instrument or, if none is specified, from the date an asset becomes subject to the trust. In the case of an asset that becomes subject to a trust […]
501C.1105 INCOME EARNED DURING ADMINISTRATION OF A DECEDENT’S ESTATE. Subdivision 1. Expenses. Unless a will provides otherwise and subject to subdivision 2, all expenses incurred in connection with the settlement of a decedent’s estate, including debts, funeral expenses, estate taxes, interest and penalties concerning taxes, family allowances, fees of attorneys and personal representatives, and court […]
501C.1106 ENTITY DISTRIBUTIONS. Subdivision 1. Distribution of ownership interests; shares; stock splits; stock dividends; subscription rights. Distributions of shares of a distributing corporation or similar equity ownership interests in noncorporate entities, including distributions in the form of or equivalent to a stock split or stock dividend, are principal. An entity owner’s right to subscribe to […]
501C.1107 BOND PREMIUM AND DISCOUNT. Subdivision 1. Principal. Bonds or other obligations for the payment of money are principal at their inventory value, except as provided in subdivision 2 for discount bonds. No provision may be made for amortization of bond premiums or for accumulation for discount. The proceeds of sale, redemption, or other disposition […]
501C.1108 SOLE PROPRIETORSHIPS. Subdivision 1. Separate account. (a) A trustee who conducts a business or other activity as a sole proprietor may establish and maintain a separate account for the transactions of the business or other activity, whether or not its assets are segregated from other trust assets, if the trustee determines that it is […]
501C.1109 DISPOSITION OF NATURAL RESOURCES. Subdivision 1. Allocation of receipts. (a) If a part of the principal consists of a right to receive royalties, overriding or limited royalties, working interests, production payments, net profit interests, or other interests in minerals or other natural resources in, on, or under land, the receipts from taking the natural […]
501C.1110 TIMBER. Subdivision 1. Net receipts. If a part of the principal consists of land from which merchantable timber may be removed, the net receipts from taking the timber from the land must be allocated as follows: (1) to income to the extent that the amount of timber removed from the land during the accounting […]
501C.1111 ANNUITIES, QUALIFIED AND NONQUALIFIED EMPLOYEE COMPENSATION, RETIREMENT PLANS AND OTHER PROPERTY SUBJECT TO DEPLETION. Except as provided in sections 501C.1109 and 501C.1110, if part of the principal consists of property subject to depletion, including leaseholds, patents, copyrights, royalty rights, rights to receive payments on a contract for deferred compensation, qualified and nonqualified employer retirement […]
501C.1112 TRUSTEE’S POWER TO ADJUST. Subdivision 1. Power to adjust. A trustee may adjust between principal and income to the extent the trustee considers necessary to comply with section 501C.1102, subdivision 3, after applying section 501C.1102, subdivisions 1 and 2, if the trustee invests and manages the trust assets as a prudent investor and the […]
501C.1113 CHARGES AGAINST INCOME AND PRINCIPAL. Subdivision 1. Income. The following charges must be made against income: (1) ordinary expenses incurred in connection with the administration, management, or preservation of the trust property, including regularly recurring taxes assessed against a portion of the principal, water rates, premiums on insurance taken upon the interests of the […]
501C.1114 NONTRUST ESTATES. Subdivision 1. Limitations. Sections 501C.1101 to 501C.1118 apply to nontrust estates, subject to: (1) agreement of the parties; (2) specific direction in the instrument creating the nontrust estates; (3) subdivision 2; and (4) other applicable statutes. References in sections 501C.1101 to 501C.1118 to trusts and trustees must be read as applying to […]
501C.1115 APPLICATION. Except as specifically provided in the governing instrument, Minnesota Statutes 1988, sections 501.48 to 501.63, apply to a receipt or expense received or incurred after January 1, 1970, and before January 1, 1990, by any trust or decedent’s estate whether established before or after January 1, 1970, and whether the asset involved was […]
501C.1116 ASCERTAINMENT OF INCOME OR PRINCIPAL. Sections 501C.1101 to 501C.1118 do not govern the ascertainment of what constitutes the receipt of income or principal by the estate or trust for income tax purposes. History: 2015 c 5 art 11 s 16
501C.1117 UNIFORMITY OF INTERPRETATION. Sections 501C.1101 to 501C.1118 must be so construed as to effectuate their general purpose to make uniform the law of those states that enact them. History: 2015 c 5 art 11 s 17
501C.1118 SHORT TITLE. Sections 501C.1101 to 501C.1117 may be cited as the Uniform Principal and Income Act. History: 2015 c 5 art 11 s 18
