Section 501C.1110 — Timber.
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 […]
Section 501C.1101 — Definitions.
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 […]
Section 501C.1102 — Duty Of Trustee As To Receipts And Expenditure.
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 […]
Section 501C.1103 — Income; Principal; Charges.
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 […]
Section 501C.1104 — When Right To Income Arises; Apportionment Of Income.
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 […]
Section 501C.1105 — Income Earned During Administration Of A Decedent’s Estate.
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 […]
Section 501C.1106 — Entity Distributions.
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 […]
Section 501C.1107 — Bond Premium And Discount.
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 […]