ARTICLE 3



APPORTIONMENT
AT BEGINNING AND END OF INCOME INTEREST



 



[§557A-301]  When right to income begins and
ends.  (a)  An income beneficiary is entitled to net income from the date
on which the income interest begins.  An income interest begins on the date
specified in the terms of the trust or, if no date is specified, on the date an
asset becomes subject to a trust or successive income interest.



(b)  An asset becomes subject to a trust on the
date:



(1)  It is transferred to the trust in the case of an
asset that is transferred to a trust during the transferor's life;



(2)  Of a testator's death in the case of an asset
that becomes subject to a trust by reason of a will, even if there is an
intervening period of administration of the testator's estate; or



(3)  Of an individual's death in the case of an asset
that is transferred to a fiduciary by a third party because of the individual's
death.



(c)  An asset becomes subject to a successive
income interest on the day after the preceding income interest ends, as
determined under subsection (d), even if there is an intervening period of
administration to wind up the preceding income interest.



(d)  An income interest ends on the day before
an income beneficiary dies or another terminating event occurs.  For purposes
of this chapter, an income interest also ends on the last day of a period
during which there is no beneficiary to whom a trustee may distribute income.
[L 2000, c 191, pt of §1]