District of Columbia § 28-4804.01 Character of receipts.

District of Columbia Statutes

§ 28-4804.01 — Character of receipts.

District of Columbia § 28-4804.01

JurisdictionDistrict of Columbia

Title 28Commercial Instruments and Transactions. [Enacted title]

Ch. 48Principal and Income; Uniform Law.

Subch. IVAllocation of Receipts During Administration of Trust.

Subpart 1Receipts From Entities.

This text of District of Columbia § 28-4804.01 (Character of receipts.) is published on Counsel Stack Legal Research, covering District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

D.C. Code § 28-4804.01 (2026).

Text

(a)For the purposes of this section, the term “entity” means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which § 28-4804.02 applies, a business or activity to which § 28-4804.03 applies, or an asset-backed security to which § 28-4804.15 applies.

(b)Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.

(c)A trustee shall allocate the following receipts from an entity to principal:

(1)Property other than money;

(2)Money received in one distribution or a series of related distributions in exchange for part or all of a trust’s interest in the e

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(a) For the purposes of this section, the term “entity” means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which § 28-4804.02 applies, a business or activity to which § 28-4804.03 applies, or an asset-backed security to which § 28-4804.15 applies.

(b) Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.

(c) A trustee shall allocate the following receipts from an entity to principal:

(1) Property other than money;

(2) Money received in one distribution or a series of related distributions in exchange for part or all of a trust’s interest in the entity;

(3) Money received in total or partial liquidation of the entity; and

(4) Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.

(d) Money is received in partial liquidation:

(1) To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or

(2) If the total amount of money and property received in a distribution or series of related distributions is greater than 20 percent of the entity’s gross assets, as shown by the entity’s year-end financial statements immediately preceding the initial receipt.

(e) Money is not received in partial liquidation, nor may it be taken into account under subsection (d)(2) of this section, to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money.

(f) A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity’s board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation’s board of directors.