55-13-4 When right to income arises--Apportionment of income.
55-13-4.
When right to income arises--Apportionment of income.
(a)
An income
beneficiary is
entitled to
income from
the date
specified in the
trust
instrument, or,
if none is
specified, from
the date an
asset becomes
subject to the
trust. In the
case of an asset
becoming
subject to a
trust by reason
of a will, it
becomes
subject to the
trust as of the
date of the
death of the
testator even
though there is
an intervening
period of
administration
of the testator's
estate.
(b)
In the administration of a decedent's estate or an asset becoming subject to a trust by
reason of a will
(1)
receipts due but not paid at the date of death of the testator are principal;
(2)
receipts in the form of periodic payments (other than corporate distributions to
stockholders), including rent, interest, or annuities, not due at the date of the death
of the testator shall be treated as accruing from day to day. That portion of the
receipt accruing before the date of death is principal, and the balance is income.
(c)
In all other cases, any receipt from an income producing asset is income even though the
receipt was earned or accrued in whole or in part before the date when the asset became
subject to the trust.
(d)
On termination of an income interest, the income beneficiary whose interest is terminated,
or his estate, is entitled to
(1)
income undistributed on the date of termination;
(2)
income due but not paid to the trustee on the date of termination;
(3)
income in the form of periodic payments (other than corporate distributions to
stockholders), including rent, interest, or annuities, not due on the date of
termination, accrued from day to day.
(e)
Corporate distributions to stockholders shall be treated as due on the day fixed by the
corporation for determination of stockholders of record entitled to distribution or, if no
date is fixed, on the date of declaration of the distribution by the corporation.
Source: SL 1984, ch 323, § 4.