If a trustee determines that an allocation
between principal and income required by section 31, 32, 33, 34, or 37
of this chapter is insubstantial, the trustee may allocate the entire
amount to principal unless one (1) of the circumstances described in
section 15(c) of this chapter applies to the allocation. This power may
be exercised by a cotrustee in the circumstances described in section
15(d) of this chapter and may be released for the reasons and in the
manner described in section 15(e) of this chapter. An allocation is
presumed to be insubstantial if:
(1)the amount of the allocation would increase or decrease net
income in an accounting period, as determined before the
allocation, by less than ten percent (10%); or
(2)the value of the asset producing the receipt for which the
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If a trustee determines that an allocation
between principal and income required by section 31, 32, 33, 34, or 37
of this chapter is insubstantial, the trustee may allocate the entire
amount to principal unless one (1) of the circumstances described in
section 15(c) of this chapter applies to the allocation. This power may
be exercised by a cotrustee in the circumstances described in section
15(d) of this chapter and may be released for the reasons and in the
manner described in section 15(e) of this chapter. An allocation is
presumed to be insubstantial if:
(1) the amount of the allocation would increase or decrease net
income in an accounting period, as determined before the
allocation, by less than ten percent (10%); or
(2) the value of the asset producing the receipt for which the
allocation would be made is less than ten percent (10%) of the
total value of the trust's assets at the beginning of the accounting
period.