§ 61-410 — Liquidating asset

Delaware § 61-410

• 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) In this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than 1 year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to § 61-409 of this title, resources subject to § 61-411 of this title, timber subject to § 61-412 of this title, an activity subject to § 61-414 of this title, an asset subject to § 61-415 of this title, or any asset for which the trustee establishes a reserve for depreciation under § 61-503 of this title.

(b) A trustee shall allocate to income 5 percent of the receipts from a liquidating asset and the balance to principal.

Legislative History

77 Del. Laws, c. 99, § 1