State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-4-409

§ 37A‑4‑409. Deferred compensation, annuities, and similar payments.

(a)        In this section,"payment" means a payment that a trustee may receive over a fixednumber of years or during the life of one or more individuals because ofservices rendered or property transferred to the payer in exchange for futurepayments. The term includes a payment made in money or property from thepayer's general assets or from a separate fund created by the payer, includinga private or commercial annuity, an individual retirement account, and apension, profit‑sharing, stock‑bonus, or stock‑ownershipplan.

(b)        To the extent thata payment is characterized as interest or a dividend or a payment made in lieuof interest or a dividend, a trustee shall allocate it to income. The trusteeshall allocate to principal the balance of the payment and any other paymentreceived in the same accounting period that is not characterized as interest, adividend, or an equivalent payment.

(c)        If no part of apayment is characterized as interest, a dividend, or an equivalent payment, andall or part of the payment is required to be made, a trustee shall allocate toincome ten percent (10%) of the part that is required to be made during theaccounting period and the balance to principal. If no part of a payment isrequired to be made or the payment received is the entire amount to which thetrustee is entitled, the trustee shall allocate the entire payment toprincipal. For purposes of this subsection, a payment is not "required tobe made" to the extent that it is made because the trustee exercises aright of withdrawal.

(d)        If, to obtain anestate tax marital deduction for a trust, a trustee shall allocate more of apayment to income than provided for by this section, the trustee shall allocateto income the additional amount necessary to obtain the marital deduction.

(e)        This section doesnot apply to payments to which G.S. 37A‑4‑410 applies. (2003‑232, s. 2.)

State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-4-409

§ 37A‑4‑409. Deferred compensation, annuities, and similar payments.

(a)        In this section,"payment" means a payment that a trustee may receive over a fixednumber of years or during the life of one or more individuals because ofservices rendered or property transferred to the payer in exchange for futurepayments. The term includes a payment made in money or property from thepayer's general assets or from a separate fund created by the payer, includinga private or commercial annuity, an individual retirement account, and apension, profit‑sharing, stock‑bonus, or stock‑ownershipplan.

(b)        To the extent thata payment is characterized as interest or a dividend or a payment made in lieuof interest or a dividend, a trustee shall allocate it to income. The trusteeshall allocate to principal the balance of the payment and any other paymentreceived in the same accounting period that is not characterized as interest, adividend, or an equivalent payment.

(c)        If no part of apayment is characterized as interest, a dividend, or an equivalent payment, andall or part of the payment is required to be made, a trustee shall allocate toincome ten percent (10%) of the part that is required to be made during theaccounting period and the balance to principal. If no part of a payment isrequired to be made or the payment received is the entire amount to which thetrustee is entitled, the trustee shall allocate the entire payment toprincipal. For purposes of this subsection, a payment is not "required tobe made" to the extent that it is made because the trustee exercises aright of withdrawal.

(d)        If, to obtain anestate tax marital deduction for a trust, a trustee shall allocate more of apayment to income than provided for by this section, the trustee shall allocateto income the additional amount necessary to obtain the marital deduction.

(e)        This section doesnot apply to payments to which G.S. 37A‑4‑410 applies. (2003‑232, s. 2.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-4-409

§ 37A‑4‑409. Deferred compensation, annuities, and similar payments.

(a)        In this section,"payment" means a payment that a trustee may receive over a fixednumber of years or during the life of one or more individuals because ofservices rendered or property transferred to the payer in exchange for futurepayments. The term includes a payment made in money or property from thepayer's general assets or from a separate fund created by the payer, includinga private or commercial annuity, an individual retirement account, and apension, profit‑sharing, stock‑bonus, or stock‑ownershipplan.

(b)        To the extent thata payment is characterized as interest or a dividend or a payment made in lieuof interest or a dividend, a trustee shall allocate it to income. The trusteeshall allocate to principal the balance of the payment and any other paymentreceived in the same accounting period that is not characterized as interest, adividend, or an equivalent payment.

(c)        If no part of apayment is characterized as interest, a dividend, or an equivalent payment, andall or part of the payment is required to be made, a trustee shall allocate toincome ten percent (10%) of the part that is required to be made during theaccounting period and the balance to principal. If no part of a payment isrequired to be made or the payment received is the entire amount to which thetrustee is entitled, the trustee shall allocate the entire payment toprincipal. For purposes of this subsection, a payment is not "required tobe made" to the extent that it is made because the trustee exercises aright of withdrawal.

(d)        If, to obtain anestate tax marital deduction for a trust, a trustee shall allocate more of apayment to income than provided for by this section, the trustee shall allocateto income the additional amount necessary to obtain the marital deduction.

(e)        This section doesnot apply to payments to which G.S. 37A‑4‑410 applies. (2003‑232, s. 2.)

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