55-277.17 - Insubstantial allocations not required.
§ 55-277.17. Insubstantial allocations not required.
If a trustee determines that an allocation between principal and incomerequired by §§ 55-277.18, 55-277.19, 55-277.20, 55-277.21, or § 55-277.24 isinsubstantial, the trustee may allocate the entire amount to principal unlessone of the circumstances described in subsection C of § 55-277.4 applies tothe allocation. This power may be exercised by a cotrustee in thecircumstances described in subsection D of § 55-277.4 and may be released forthe reasons and in the manner described in subsection E of § 55-277.4. Anallocation is presumed to be insubstantial if:
1. The amount of the allocation would increase or decrease net income in anaccounting period, as determined before the allocation, by less than tenpercent; or
2. The value of the asset producing the receipt for which the allocationwould be made is less than ten percent of the total value of the trust'sassets at the beginning of the accounting period.
(1999, c. 975.)