91-17-7 - Income; principal; charges.
§ 91-17-7. Income; principal; charges.
(1) Income is the return in money or property derived from the use of principal, including return received as:
(a) Rent of real or personal property, including sums received for cancellation or renewal of a lease.
(b) Interest on money lent, including sums received as consideration for the privilege of prepayment of principal, except as provided in Section 91-17-15 on bond premium and bond discount.
(c) Income earned during administration of a decedent's estate as provided in Section 91-17-11.
(d) Corporate distributions as provided in Section 91-17-13.
(e) Accrued increment on bonds or other obligations issued at discount as provided in Section 91-17-15.
(f) Receipts from business and farming operations as provided in Section 91-17-17.
(g) Receipts from disposition of natural resources as provided in Sections 91-17-19 and 91-17-21.
(h) Receipts from other principal subject to depletion as provided in Section 91-17-23.
(i) Receipts from disposition of underproductive property as provided in Section 91-17-25.
(2) Principal is the property which has been set aside by the owner or the person legally empowered so that it is held in trust eventually to be delivered to a remainderman, while the return or use of the principal is in the meantime taken or received by or held for accumulation for an income beneficiary. Principal includes:
(a) Consideration received by the trustee on the sale or other transfer of principal, or on repayment of a loan, or as a refund or replacement or change in the form of principal.
(b) Proceeds of property taken on eminent domain proceedings.
(c) Proceeds of insurance upon property forming part of the principal, except proceeds of insurance upon a separate interest of an income beneficiary.
(d) Stock dividends, receipts on liquidation of a corporation, and other corporate distributions as provided in Section 91-17-13.
(e) Receipts from the disposition of corporate securities as provided in Section 91-17-15.
(f) Royalties and other receipts from deposition of natural resources as provided in Sections 91-17-19 and 91-17-21.
(g) Receipts from other principal subject to depletion as provided in Section 91-17-23.
(h) Any profit resulting from any change in the form of principal except as provided in Section 91-17-25 on underproductive property.
(i) Receipts from disposition of underproductive property as provided in Section 91-17-25.
(j) Any allowances for depreciation established under Sections 91-17-17 and 91-17-27(1)(b).
(3) After determining income and principal in accordance with the terms of the trust instrument or of this chapter, the trustee shall charge expenses and other charges to income or principal as provided in Section 91-17-27.
Sources: Codes, 1942, § 672-173; Laws, 1966, ch. 371, § 3, eff from and after January 1, 1967.