§ 2-3-810 — Apportionment when income interest ends

(a) 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.