Part 4.--ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST
Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)
58-9-412.Timber.(a) To the extent that a trustee accounts for receipts fromthe sale oftimberand related products pursuant to this section, the trustee shall allocate thenetreceipts:
(1) To income to the extent that the amount of timber removed from theland does not exceed the rate of growth of the timber during the accountingperiodsin which a beneficiary has a mandatory income interest;
(2) to principal to the extent that the amount of timber removed from theland exceeds the rate of growth of the timber or the net receipts are from thesale ofstanding timber;
(3) to or between income and principal if the net receipts are from thelease of timberland or from a contract to cut timber from land owned by atrust, by determining the amount of timber removed from the land under thelease orcontract and applying the rules in subsections (1) and (2); or
(4) to principal to the extent that advance payments, bonuses, and otherpayments are not allocated pursuant to subsection (1), (2), or (3).
(b) In determining net receipts to be allocated pursuant to subsection (a),a trustee shall deduct and transfer to principal a reasonable amount fordepletion.
(c) This act applies whether or not a decedent or transferor washarvesting timber from the property before it became subject to the trust.
(d) If a trust owns an interest in timberland on the effective date of thisact, the trustee may allocate net receipts from the sale of timber and relatedproducts as provided in this act or in the manner used by the trustee beforetheeffective date of this act. If the trust acquires an interest in timberlandafter theeffective date of this act, the trustee shall allocate net receipts from thesale oftimber and related products as provided in this act.
Part 4.--ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST
Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)
58-9-412.Timber.(a) To the extent that a trustee accounts for receipts fromthe sale oftimberand related products pursuant to this section, the trustee shall allocate thenetreceipts:
(1) To income to the extent that the amount of timber removed from theland does not exceed the rate of growth of the timber during the accountingperiodsin which a beneficiary has a mandatory income interest;
(2) to principal to the extent that the amount of timber removed from theland exceeds the rate of growth of the timber or the net receipts are from thesale ofstanding timber;
(3) to or between income and principal if the net receipts are from thelease of timberland or from a contract to cut timber from land owned by atrust, by determining the amount of timber removed from the land under thelease orcontract and applying the rules in subsections (1) and (2); or
(4) to principal to the extent that advance payments, bonuses, and otherpayments are not allocated pursuant to subsection (1), (2), or (3).
(b) In determining net receipts to be allocated pursuant to subsection (a),a trustee shall deduct and transfer to principal a reasonable amount fordepletion.
(c) This act applies whether or not a decedent or transferor washarvesting timber from the property before it became subject to the trust.
(d) If a trust owns an interest in timberland on the effective date of thisact, the trustee may allocate net receipts from the sale of timber and relatedproducts as provided in this act or in the manner used by the trustee beforetheeffective date of this act. If the trust acquires an interest in timberlandafter theeffective date of this act, the trustee shall allocate net receipts from thesale oftimber and related products as provided in this act.
Part 4.--ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST
Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)
58-9-412.Timber.(a) To the extent that a trustee accounts for receipts fromthe sale oftimberand related products pursuant to this section, the trustee shall allocate thenetreceipts:
(1) To income to the extent that the amount of timber removed from theland does not exceed the rate of growth of the timber during the accountingperiodsin which a beneficiary has a mandatory income interest;
(2) to principal to the extent that the amount of timber removed from theland exceeds the rate of growth of the timber or the net receipts are from thesale ofstanding timber;
(3) to or between income and principal if the net receipts are from thelease of timberland or from a contract to cut timber from land owned by atrust, by determining the amount of timber removed from the land under thelease orcontract and applying the rules in subsections (1) and (2); or
(4) to principal to the extent that advance payments, bonuses, and otherpayments are not allocated pursuant to subsection (1), (2), or (3).
(b) In determining net receipts to be allocated pursuant to subsection (a),a trustee shall deduct and transfer to principal a reasonable amount fordepletion.
(c) This act applies whether or not a decedent or transferor washarvesting timber from the property before it became subject to the trust.
(d) If a trust owns an interest in timberland on the effective date of thisact, the trustee may allocate net receipts from the sale of timber and relatedproducts as provided in this act or in the manner used by the trustee beforetheeffective date of this act. If the trust acquires an interest in timberlandafter theeffective date of this act, the trustee shall allocate net receipts from thesale oftimber and related products as provided in this act.
