§ 30-2-14-22 — Termination of mandatory income interest

Indiana § 30-2-14-22

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

Text

(a) As used in this section, "undistributed
income" means net income received before the date on which an
income interest ends. The term does not include an item of income or
expense that is due or accrued or net income that has been added or is
required to be added to principal under the terms of the trust.
(b) When a mandatory income interest ends, the trustee shall pay to
a mandatory income beneficiary who survives that date, or the estate of
a deceased mandatory income beneficiary whose death causes the
interest to end, the beneficiary's share of the undistributed income that
is not disposed of under the terms of the trust unless the beneficiary has
an unqualified power to revoke more than five percent (5%) of the trust
immediately before the income interest ends. In the latter case, the
undistributed income from the portion of the trust that may be revoked
must be added to principal.
(c) When a trustee's obligation to pay a fixed annuity or a fixed
fraction of the value of the trust's assets ends, the trustee shall prorate
the final payment if and to the extent required by applicable law to
accomplish a purpose of the trust or its settlor relating to income, gift,
estate, or other tax requirements.

Legislative History

As added by P.L.84-2002, SEC.2.