JurisdictionNew YorkLaw EPTEstates, Powers & Trusts
Part 4Allocation of Receipts During Administration of Trust
Subpart 1Receipts From Entities
Art. 11-AUniform Principal and Income Act
This text of New York § 11-A-4.1 (Character of receipts) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§ 11-A-4.1 Character of receipts\n (a) In this section, "entity" means a corporation, partnership,\nlimited liability company, regulated investment company, real estate\ninvestment trust, common trust fund, or any other organization in which\na trustee has an interest other than a trust or estate to which 11-A-4.2\napplies, a business or activity to which 11-A-4.3 applies, or an\nasset-backed security to which 11-A-4.15 applies.\n (b) Except as otherwise provided in this section, a trustee shall\nallocate to income money received from an entity.\n (c) A trustee shall allocate the following receipts from an entity to\nprincipal:\n (1) property other than money; provided that if a trustee receives the\noption to receive a distribution in the form of money or property and\nelects to recei
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§ 11-A-4.1 Character of receipts\n (a) In this section, "entity" means a corporation, partnership,\nlimited liability company, regulated investment company, real estate\ninvestment trust, common trust fund, or any other organization in which\na trustee has an interest other than a trust or estate to which 11-A-4.2\napplies, a business or activity to which 11-A-4.3 applies, or an\nasset-backed security to which 11-A-4.15 applies.\n (b) Except as otherwise provided in this section, a trustee shall\nallocate to income money received from an entity.\n (c) A trustee shall allocate the following receipts from an entity to\nprincipal:\n (1) property other than money; provided that if a trustee receives the\noption to receive a distribution in the form of money or property and\nelects to receive the distribution in the form of property such\ndistribution shall be considered to be a distribution of money;\n (2) money received in one distribution or a series of related\ndistributions in exchange for part or all of a trust's interest in the\nentity;\n (3) money received in total or partial liquidation of the entity; and\n (4) money received from an entity that is a regulated investment\ncompany or a real estate investment trust if the money distributed is a\ncapital gain dividend for federal income tax purposes.\n (d) Money is received in partial liquidation:\n (1) to the extent that the entity, at or near the time of a\ndistribution, indicates that it is a distribution in partial\nliquidation; or\n (2) if the total amount of money and property received in a\ndistribution or series of related distributions is greater than twenty\npercent of the entity's gross assets, as shown by the entity's year-end\nfinancial statements immediately preceding the initial receipt.\n (e) Money is not received in partial liquidation, nor may it be taken\ninto account under subparagraph (d)(2), to the extent that it does not\nexceed the amount of income tax that a trustee or beneficiary must pay\non taxable income of the entity that distributes the money.\n (f) A trustee may rely upon a statement made by an entity about the\nsource or character of a distribution if the statement is made at or\nnear the time of distribution by the entity's board of directors or\nother person or group of persons authorized to exercise powers to pay\nmoney or transfer property comparable to those of a corporation's board\nof directors.\n