§ 2-3-822 — Timber

(a) 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:
(i) To income to the extent that the amount of timber
removed from the land does not exceed the estimated rate of
growth of the timber during the accounting periods in which a
beneficiary has a mandatory income interest;
(ii) To principal to the extent that the amount of
timber removed from the land exceeds the estimated rate of
growth of the timber or the net receipts are from the sale of
standing timber;
(iii) 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 paragraphs (i) and (ii) of this
subsection; or
(iv) To principal to the extent that advance
payments, bonuses and other payments are not allocated pursuant
to paragraph (i), (ii) or (iii) of this subsection.
(b) In determining net receipts to be allocated pursuant
to subsection (a) of this section, a trustee shall deduct and
transfer to principal a reasonable amount for depletion.
(c) This act applies whether or not a decedent or
transferor was harvesting timber from the property before it
became subject to the trust.
(d) If a trust owns an interest in timberland on the
effective date of this act, the trustee may allocate net
receipts from the sale of timber and related products as
provided in this act or in the manner used by the trustee before
the effective date of this act. If the trust acquires an
interest in timberland after the effective date of this act, the
trustee shall allocate net receipts from the sale of timber and
related products as provided in this act.