55-277.7 - When right to income begins and ends.
§ 55-277.7. When right to income begins and ends.
A. An income beneficiary is entitled to net income from the date on which theincome interest begins. An income interest begins on the date specified inthe terms of the trust or, if no date is specified, on the date an assetbecomes subject to a trust or successive income interest.
B. An asset becomes subject to a trust:
1. On the date it is transferred to the trust in the case of an asset that istransferred to a trust during the transferor's life;
2. On the date of a testator's death in the case of an asset that becomessubject to a trust by reason of a will, even if there is an interveningperiod of administration of the testator's estate; or
3. On the date of an individual's death in the case of an asset that istransferred to a fiduciary by a third party because of the individual's death.
C. An asset becomes subject to a successive income interest on the day afterthe preceding income interest ends, as determined under subsection D, even ifthere is an intervening period of administration to wind up the precedingincome interest.
D. An income interest ends on the day before an income beneficiary dies oranother terminating event occurs, or on the last day of a period during whichthere is no beneficiary to whom a trustee may distribute income.
(1999, c. 975.)