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55-13A-404. Principal receipts.

A trustee shall allocate to principal:

(1)To the extent not allocated to income under this chapter, 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 its trustee as beneficiary;

(2)Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this article;

(3)Amounts recovered from third parties to reimburse the trust because of disbursements described in §55-13A-502(a)(7) or for other reasons to the extent not based on the loss of income;

(4)Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;

(5)Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and

(6)Other receipts as provided in §§55-13A-408 to 55-13A-415, inclusive.

Source: SL 2007, ch 282, §14.