22-3-303 - Apportionment when income interest ends. - Utah Statutes

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22-3-303. Apportionment when income interest ends.
(1) In this section, "undistributed income" means net income received before the date onwhich an income interest ends. The term does not include an item of income or expense that isdue or accrued or net income that has been added or is required to be added to principal under theterms of the trust.
(2) When a mandatory income interest ends, the trustee shall pay to a mandatory incomebeneficiary who survives that date, or the estate of a deceased mandatory income beneficiarywhose death causes the interest to end, the beneficiary's share of the undistributed income that isnot disposed of under the terms of the trust unless the beneficiary has an unqualified power torevoke more than 5% of the trust immediately before the income interest ends. In the latter case,the undistributed income from the portion of the trust that may be revoked must be added toprincipal.
(3) When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value ofthe trust's assets ends, the trustee shall prorate the final payment if and to the extent required byapplicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, orother tax requirements.

Enacted by Chapter 285, 2004 General Session

State Codes and Statutes

Statutes > Utah > Title-22 > Chapter-03 > 22-3-303

22-3-303. Apportionment when income interest ends.
(1) In this section, "undistributed income" means net income received before the date onwhich an income interest ends. The term does not include an item of income or expense that isdue or accrued or net income that has been added or is required to be added to principal under theterms of the trust.
(2) When a mandatory income interest ends, the trustee shall pay to a mandatory incomebeneficiary who survives that date, or the estate of a deceased mandatory income beneficiarywhose death causes the interest to end, the beneficiary's share of the undistributed income that isnot disposed of under the terms of the trust unless the beneficiary has an unqualified power torevoke more than 5% of the trust immediately before the income interest ends. In the latter case,the undistributed income from the portion of the trust that may be revoked must be added toprincipal.
(3) When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value ofthe trust's assets ends, the trustee shall prorate the final payment if and to the extent required byapplicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, orother tax requirements.

Enacted by Chapter 285, 2004 General Session

State Codes and Statutes

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State Codes and Statutes

Statutes > Utah > Title-22 > Chapter-03 > 22-3-303

22-3-303. Apportionment when income interest ends.
(1) In this section, "undistributed income" means net income received before the date onwhich an income interest ends. The term does not include an item of income or expense that isdue or accrued or net income that has been added or is required to be added to principal under theterms of the trust.
(2) When a mandatory income interest ends, the trustee shall pay to a mandatory incomebeneficiary who survives that date, or the estate of a deceased mandatory income beneficiarywhose death causes the interest to end, the beneficiary's share of the undistributed income that isnot disposed of under the terms of the trust unless the beneficiary has an unqualified power torevoke more than 5% of the trust immediately before the income interest ends. In the latter case,the undistributed income from the portion of the trust that may be revoked must be added toprincipal.
(3) When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value ofthe trust's assets ends, the trustee shall prorate the final payment if and to the extent required byapplicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, orother tax requirements.

Enacted by Chapter 285, 2004 General Session