§ 61-404 — Principal receipts

Delaware § 61-404

• Jurisdiction: Delaware
• Title: 12
• Part: Allocation of Principal and Income
• Ch. 61: DELAWARE UNIFORM PRINCIPAL AND INCOME ACT
• Subch.: Allocation of Receipts During Administration of Trust

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 § 61-502(a)(7) of this title 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 subchapter III of this chapter.

Legislative History

77 Del. Laws, c. 99, § 1