North Dakota § 59-04.2-20 (412) Timber

North Dakota Statutes

§ 59-04.2-20 — (412) Timber

North Dakota § 59-04.2-20

Title 59Trusts, Uses, and Powers

Ch. 59-04.2Uniform Principal and Income Act (1997)

This text of North Dakota § 59-04.2-20 ((412) Timber) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 59-04.2-20 (2026).

Text

1.To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts:

a.To income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;

b.To principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;

c.To or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and a

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1. To the extent that a trustee accounts for receipts from the sale of timber and related
products pursuant to this section, the trustee shall allocate the net receipts:
a. To income to the extent that the amount of timber removed from the land does not
exceed the rate of growth of the timber during the accounting periods in which a
beneficiary has a mandatory income interest;
b. To principal to the extent that the amount of timber removed from the land
exceeds the rate of growth of the timber or the net receipts are from the sale of
standing timber;
c. To or between income and principal if the net receipts are from the lease of
timberland or from a contract to cut timber from land owned by a trust, by
determining the amount of timber removed from the land under the lease or
contract and applying the rules in subdivisions a and b; or
d. To principal to the extent that advance payments, bonuses, and other payments
are not allocated pursuant to subdivision a, b, or c.
2. In determining net receipts to be allocated pursuant to subsection 1, a trustee shall
deduct and transfer to principal a reasonable amount for depletion.
3. This chapter applies whether or not a decedent or transferor was harvesting timber
from the property before it became subject to the trust.
4. If a trust owns an interest in timberland on August 1, 1999, the trustee may allocate net
receipts from the sale of timber and related products as provided in this chapter or in
the manner used by the trustee before August 1, 1999. If the trust acquires an interest
in timberland after August 1, 1999, the trustee shall allocate net receipts from the sale
of timber and related products as provided in this chapter.