§ 28-4804.04 — Principal receipts.

District of Columbia § 28-4804.04

• Jurisdiction: District of Columbia
• Title 28: Commercial Instruments and Transactions. [Enacted title]
• Ch. 48: Principal and Income; Uniform Law.
• Subch. IV: Allocation of Receipts During Administration of Trust.
• Subpart 2: Receipts Not Normally Apportioned.

Text

A trustee shall allocate to principal:

(1) To the extent not allocated to income under this chapter, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;

(2) Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this subchapter;

(3) Amounts recovered from third parties to reimburse the trust because of disbursements described in § 28-4805.02(a)(7) or for other reasons to the extent not based on the loss of income;

(4) Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;

(5) Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and

(6) Other receipts as provided in part C of this subchapter .

Legislative History

Apr. 27, 2001, D.C. Law 13-292, § 502(c), 48 DCR 2087