PART III. 
RECEIPTS NORMALLY APPORTIONED



 



[§557A-408]  Insubstantial allocations not
required.  If a trustee determines that an allocation between principal and
income required by sections 557A-409 through 557A-412 or section [557A-415] is
insubstantial, the trustee may allocate the entire amount to principal if one
of the circumstances described in section 557A-104(c) does not apply to such an
allocation.  This power may be exercised by a co-trustee in the circumstances
described in section 557A-104(d), and it may be released for the reasons and in
the manner described in section 557A-104(e).  An allocation shall be presumed
to be insubstantial if:



(1)  The amount of the allocation would increase or
decrease an accounting period's net income, as determined before the
allocation, by less than ten per cent; or



(2)  The value of the asset producing the receipt for
which the allocation would be made is less than ten per cent of the total value
of the trust's assets at the beginning of the accounting period. [L 2000, c
191, pt of §1]