22-3-202 - Distribution to residuary and remainder beneficiaries.
22-3-202. Distribution to residuary and remainder beneficiaries.
(1) Each beneficiary described in Subsection 22-3-201(4) is entitled to receive a portionof the net income equal to the beneficiary's fractional interest in undistributed principal assets,using values as of the distribution date. If a fiduciary makes more than one distribution of assetsto beneficiaries to whom this section applies, each beneficiary, including one who does notreceive part of the distribution, is entitled, as of each distribution date, to the net income thefiduciary has received after the date of death or terminating event or earlier distribution date buthas not distributed as of the current distribution date.
(2) In determining a beneficiary's share of net income, the following rules apply:
(a) The beneficiary is entitled to receive a portion of the net income equal to thebeneficiary's fractional interest in the undistributed principal assets immediately before thedistribution date, including assets that later may be sold to meet principal obligations.
(b) The beneficiary's fractional interest in the undistributed principal assets must becalculated without regard to property specifically given to a beneficiary and property required topay pecuniary amounts not in trust.
(c) The beneficiary's fractional interest in the undistributed principal assets must becalculated on the basis of the aggregate value of those assets as of the distribution date withoutreducing the value by any unpaid principal obligation.
(d) The distribution date for purposes of this section may be the date as of which thefiduciary calculates the value of the assets if that date is reasonably near the date on which assetsare actually distributed.
(3) If a fiduciary does not distribute all of the collected but undistributed net income toeach person as of a distribution date, the fiduciary shall maintain appropriate records showing theinterest of each beneficiary in that net income.
(4) A fiduciary may apply the rules in this section, to the extent that the fiduciaryconsiders it appropriate, to net gain or loss realized after the date of death or terminating event orearlier distribution date from the disposition of a principal asset if this section applies to theincome from the asset.
Enacted by Chapter 285, 2004 General Session