State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-4-404

Part 2. Receipts Not NormallyApportioned.

§ 37A‑4‑404. Principal receipts.

A trustee shall allocate toprincipal:

(1)        To the extent notallocated to income under this Chapter, assets received from a transferorduring the transferor's lifetime, a decedent's estate, a trust with aterminating income interest, or a payer under a contract naming the trust orits trustee as beneficiary;

(2)        Money or otherproperty received from the sale, exchange, liquidation, or change in form of aprincipal asset, including realized profit, subject to this Article;

(3)        Amounts recoveredfrom third parties to reimburse the trust because of disbursements described inG.S. 37A‑5‑502(a)(7) or for other reasons to the extent not basedon the loss of income;

(4)        Proceeds of propertytaken by eminent domain, but a separate award made for the loss of income withrespect to an accounting period during which a current income beneficiary had amandatory income interest is income;

(5)        Net income receivedin an accounting period during which there is no beneficiary to whom a trusteemay or shall distribute income; and

(6)        Other receipts asprovided in Part 3 of this Article. (2003‑232, s. 2.)

State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-4-404

Part 2. Receipts Not NormallyApportioned.

§ 37A‑4‑404. Principal receipts.

A trustee shall allocate toprincipal:

(1)        To the extent notallocated to income under this Chapter, assets received from a transferorduring the transferor's lifetime, a decedent's estate, a trust with aterminating income interest, or a payer under a contract naming the trust orits trustee as beneficiary;

(2)        Money or otherproperty received from the sale, exchange, liquidation, or change in form of aprincipal asset, including realized profit, subject to this Article;

(3)        Amounts recoveredfrom third parties to reimburse the trust because of disbursements described inG.S. 37A‑5‑502(a)(7) or for other reasons to the extent not basedon the loss of income;

(4)        Proceeds of propertytaken by eminent domain, but a separate award made for the loss of income withrespect to an accounting period during which a current income beneficiary had amandatory income interest is income;

(5)        Net income receivedin an accounting period during which there is no beneficiary to whom a trusteemay or shall distribute income; and

(6)        Other receipts asprovided in Part 3 of this Article. (2003‑232, s. 2.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-4-404

Part 2. Receipts Not NormallyApportioned.

§ 37A‑4‑404. Principal receipts.

A trustee shall allocate toprincipal:

(1)        To the extent notallocated to income under this Chapter, assets received from a transferorduring the transferor's lifetime, a decedent's estate, a trust with aterminating income interest, or a payer under a contract naming the trust orits trustee as beneficiary;

(2)        Money or otherproperty received from the sale, exchange, liquidation, or change in form of aprincipal asset, including realized profit, subject to this Article;

(3)        Amounts recoveredfrom third parties to reimburse the trust because of disbursements described inG.S. 37A‑5‑502(a)(7) or for other reasons to the extent not basedon the loss of income;

(4)        Proceeds of propertytaken by eminent domain, but a separate award made for the loss of income withrespect to an accounting period during which a current income beneficiary had amandatory income interest is income;

(5)        Net income receivedin an accounting period during which there is no beneficiary to whom a trusteemay or shall distribute income; and

(6)        Other receipts asprovided in Part 3 of this Article. (2003‑232, s. 2.)

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