Alabama § 19-3A-303 Apportionment When Income Interest Ends

Alabama Statutes

§ 19-3A-303 — Apportionment When Income Interest Ends

Alabama § 19-3A-303

Title 19Fiduciaries and Trusts

Ch. 3AAlabama Principal and Income Act

Art. 3Apportionment at Beginning and End of Income Interest

This text of Alabama § 19-3A-303 (Apportionment When Income Interest Ends) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 19-3A-303 (2026).

Text

(a)For the purposes of this section, “undistributed income” means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.

(b)Except as provided in subsection (c), on the date when a mandatory income interest ends, the fiduciary shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the mandatory income beneficiary’s share of the undistributed income that is not disposed of under the terms of the trust.

(c)If, immediately before the income interest ends, the mandatory income beneficiary

Free access — add to your briefcase to read the full text and ask questions with AI

(a) For the purposes of this section, “undistributed income” means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.
(b) Except as provided in subsection (c), on the date when a mandatory income interest ends, the fiduciary shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the mandatory income beneficiary’s share of the undistributed income that is not disposed of under the terms of the trust.
(c) If, immediately before the income interest ends, the mandatory income beneficiary has an unqualified power to revoke more than five percent of the trust, then the undistributed income from the portion of the trust that may be revoked shall be added to principal.
(d) When a fiduciary’s obligation to pay a fixed annuity or a fixed fraction of the value of the trust’s assets ends, the fiduciary shall prorate the final payment.