§ 30-2-14-20 — Income interest; asset subject to trust

Indiana § 30-2-14-20

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

Text

(a) An income beneficiary is entitled to net
income from the date on which the income interest begins. An income
interest begins on the date specified in the terms of the trust or, if no
date is specified, on the date an asset becomes subject to a trust or
successive income interest.
(b) An asset becomes subject to a trust on the following dates:
(1) On the date the asset is transferred to the trust, in the case of
an asset that is transferred to a trust during the transferor's life.
(2) On the date the asset is distributed to the trust from the
decedent's estate, if the income received during the administration
of the estate was accounted for and distributed by the estate as
part of the corpus of the estate in accordance with IC 29-1-17-7.
(3) On the date of the decedent's death if, under the terms of the
decedent's will or other applicable law, income received during
administration of the decedent's estate was accounted for and
distributed by the estate as income, and not as part of the corpus
of the estate.
(4) On the date of an individual's death, in the case of an asset that
is not part of the probate estate (as defined in IC 29-1-1-3) and
that is transferred to a trust or becomes a part of a trust because of
the individual's death.
(c) An asset becomes subject to a successive income interest on the
day after the preceding income interest ends, as determined under
subsection (d), even if there is an intervening period of administration
to wind up the preceding income interest.
(d) An income interest ends on the day before an income beneficiary
dies or another terminating event occurs, or on the last day of a period
during which there is no beneficiary to whom a trustee may distribute
income.
(e) This section applies only for purposes of determining the period
in which an income beneficiary is entitled or eligible to receive any net
income of a trust. This section does not control how receipts and
disbursements are allocated to or between principal and income during
that period. Amounts received by a trust from a decedent's estate or
another trust as a distribution of principal may be allocable to principal
under section 24 of this chapter even to the extent the amounts received
include income of the distributing estate or trust received or accrued
after the beneficiary's income interest begins.

Legislative History

As added by P.L.84-2002, SEC.2. Amended by P.L.51-2014, SEC.15.