§ 30-2-14-19 — Beneficiary's share of net income

Indiana § 30-2-14-19

• Jurisdiction: Indiana
• Art. 2: GENERAL PROVISIONS
• Ch. 14: Uniform Principal and Income Act

Text

(a) Each beneficiary described in section
18(a)(4) of this chapter is entitled to receive a portion of the net income
equal to the beneficiary's fractional interest in undistributed principal
assets, using values as of the distribution date. If a fiduciary makes
more than one (1) distribution of assets to beneficiaries to whom this
section applies, each beneficiary, including a beneficiary who does not
receive part of the distribution, is entitled, as of each distribution date,
to the net income the fiduciary has received after the date of death or
terminating event or earlier distribution date but has not distributed as
of the current distribution date.
(b) In determining a beneficiary's share of net income, the following
rules apply:
(1) The beneficiary is entitled to receive a portion of the net
income equal to the beneficiary's fractional interest in the
undistributed principal assets immediately before the distribution
date, including assets that later may be sold to meet principal
obligations.
(2) The beneficiary's fractional interest in the undistributed
principal assets must be calculated without regard to property
specifically given to a beneficiary and property required to pay
pecuniary amounts not in trust.
(3) The beneficiary's fractional interest in the undistributed
principal assets must be calculated on the basis of the aggregate
value of those assets as of the distribution date without reducing
the value by any unpaid principal obligation.
(4) The distribution date for purposes of this section may be the
date as of which the fiduciary calculates the value of the assets if
that date is reasonably near the date on which assets are actually
distributed.
(c) If a fiduciary does not distribute all of the collected but
undistributed net income to each person as of a distribution date, the
fiduciary shall maintain appropriate records showing the interest of
each beneficiary in that net income.
(d) A fiduciary may apply the rules in this section, to the extent that
the fiduciary considers it appropriate, to net gain or loss realized after
the date of death or terminating event or earlier distribution date from
the disposition of a principal asset if this section applies to the income
from the asset.

Legislative History

As added by P.L.84-2002, SEC.2. Amended by P.L.51-2014, SEC.14.