[§557A-409]  Deferred compensation,
annuities, and similar payments.  (a)  This section shall apply to payments
that a trustee may receive over a fixed number of years or during the life of
one or more individuals because of services rendered or property transferred to
the payor in exchange for future payments.  The payments include those made in
money or property from the payor's general assets or from a separate fund
created by the payor, including a private or commercial annuity, an individual
retirement account, and a pension, profit sharing, stock bonus, or stock
ownership plan.  This section shall not apply to payments to which section
557A-410 applies.



(b)  To the extent that a payment is
characterized as interest or a dividend or a payment made in lieu of interest
or a dividend, it shall be allocated to income.  The balance of the payment and
any other payment received in the same accounting period that is not
characterized as interest, a dividend, or an equivalent payment, shall be
allocated to principal.



(c)  If no part of a payment is characterized
as interest, a dividend, or an equivalent payment, and all or part of the
payment is required to be made, a trustee shall allocate to income ten per cent
of the part that is required to be made during the accounting period and the
balance to principal.  If no part of a payment is required to be made or the
payment received is the entire amount to which the trustee is entitled, the
entire payment shall be allocated to principal.



For purposes of this subsection, a payment
shall not be "required to be made" to the extent that it is made
because the trustee exercises a right of withdrawal.



(d)  If, to obtain an estate tax marital
deduction for a trust, a trustee shall allocate more of a payment to income than
provided for by this section, the trustee shall allocate to income the
additional amount necessary to obtain the marital deduction. [L 2000, c 191, pt
of §1]