§557A-404 - Principal receipts.
PART II.
RECEIPTS NOT NORMALLY APPORTIONED
[§557A-404] Principal receipts. The
following shall be allocated to principal:
(1) To the extent not allocated to income under this
chapter, assets received from a:
(A) Transferor during the transferor's lifetime;
(B) Decedent's estate;
(C) Trust with a terminating income interest;
or
(D) Payor pursuant to 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 section 557A-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 shall be classified as income;
(5) Net income received in an accounting period
during which there is no beneficiary to whom a trustee may or shall distribute
income; and
(6) Other receipts as provided in part III. [L 2000,
c 191, pt of §1]