58-9-303. Apportionment when income interest ends.

58-9-303

Chapter 58.--PERSONAL AND REAL PROPERTY
Part 3.--APPORTIONMENT AT BEGINNING AND END OF INCOME INTEREST
Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)

      58-9-303.   Apportionment when income interestends.(a) As used in this section, "undistributed income" means netincomereceivedbefore the date on which an income interest ends. The term does not include anitem of income or expense that is due or accrued or net income that has beenaddedor is required to be added to principal under the terms of the trust.

      (b)   When a mandatory income interest ends, the trustee shall pay to amandatory income beneficiary who survives that date, or the estate of adeceasedmandatory income beneficiary whose death causes the interest to end, thebeneficiary's share of the undistributed income that is not disposed ofunder theterms of the trust unless the beneficiary has an unqualified power to revokemorethan five percent of the trust immediately before the income interest ends. Inthelatter case, the undistributed income from the portion of the trust that may berevoked must be added to principal.

      (c)   When a trustee's obligation to pay a fixed annuity or a fixed fraction ofthe value of the trust's assets ends, the trustee shall prorate the finalpayment if andto the extent required by applicable law to accomplish a purpose of the trustor itssettlor relating to income, gift, estate, or other tax requirements.

      History:   L. 2000, ch. 61, § 9; July 1.