General Laws of Massachusetts - Chapter 203D Principal and Income
- Massachusetts General Laws - Short title - Chapter 203D, Section 1
This chapter shall be known as and may be cited as The Massachusetts Principal and Income Act.
- Massachusetts General Laws - Definitions - Chapter 203D, Section 2
As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings: “Accounting period”, a calendar year unless...
- Massachusetts General Laws - Fiduciary duties; general principles - Chapter 203D, Section 3
(a) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of this chapter, a...
- Massachusetts General Laws - Trustee’s power to adjust - Chapter 203D, Section 4
(a) A trustee may adjust between principal and income if the trustee considers it necessary if the trustee invests and manages trust assets as a...
- Massachusetts General Laws - Judicial control of discretionary powers - Chapter 203D, Section 5
(a) A court shall not change a trustee’s decision to exercise or not to exercise a discretionary power conferred by this chapter unless it determines...
- Massachusetts General Laws - Determination and distribution of net income - Chapter 203D, Section 6
After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules shall apply: (1)...
- Massachusetts General Laws - Distribution to residuary and remainder beneficiaries - Chapter 203D, Section 7
(a) Each beneficiary described in paragraph (4) of section 6 is entitled to receive a portion of the net income equal to the beneficiary’s fractional...
- Massachusetts General Laws - When right to income begins and ends - Chapter 203D, Section 8
(a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date...
- Massachusetts General Laws - Apportionment of receipts and disbursements when decedent dies or income interest begins - Chapter 203D, Section 8A
(a) A trustee shall allocate an income receipt or disbursement other than one to which paragraph (1) of section 6 applies to principal if its...
- Massachusetts General Laws - Apportionment when income interest ends - Chapter 203D, Section 9
(a) When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a...
- Massachusetts General Laws - Character of receipts - Chapter 203D, Section 10
(a) Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity. (b) A trustee shall allocate the...
- Massachusetts General Laws - Distribution from trust or estate - Chapter 203D, Section 11
A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has...
- Massachusetts General Laws - Business and other activities conducted by trustee - Chapter 203D, Section 12
(a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account...
- Massachusetts General Laws - Principal receipts - Chapter 203D, Section 13
If not allocated to income, a trustee shall allocate to principal: (1) to the extent not allocated to income under this chapter, assets received from...
- Massachusetts General Laws - Rental property - Chapter 203D, Section 14
If a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of...
- Massachusetts General Laws - Obligation to pay money - Chapter 203D, Section 15
(a) An amount received as interest, whether determined at a fixed, variable or floating rate on an obligation to pay money to the trustee, including...
- Massachusetts General Laws - Insurance policies and similar contracts - Chapter 203D, Section 16
(a) Except as otherwise provided in subsection (b), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in...
- Massachusetts General Laws - Insubstantial allocations not required - Chapter 203D, Section 17
If a trustee determines that an allocation between principal and income required by section 18, 19, 20, 21 or 24 is insubstantial, the trustee may...
- Massachusetts General Laws - Deferred compensation, annuities and similar payments - Chapter 203D, Section 18
(a) If a payment is characterized as interest or a dividend or a payment made in lieu of interest or a dividend, a trustee shall...
- Massachusetts General Laws - Liquidating asset - Chapter 203D, Section 19
A trustee shall allocate to income 10 per cent of the receipts from a liquidating asset and the balance to principal.
- Massachusetts General Laws - Minerals, water, and other natural resources - Chapter 203D, Section 20
(a) If a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them...
- Massachusetts General Laws - Timber - Chapter 203D, Section 21
(a) If a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net...
- Massachusetts General Laws - Property not productive of income - Chapter 203D, Section 22
(a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the...
- Massachusetts General Laws - Derivatives and options - Chapter 203D, Section 23
(a) To the extent that a trustee does not account under section 12 for transactions in derivatives, the trustee shall allocate to principal receipts from...
- Massachusetts General Laws - Asset-backed securities - Chapter 203D, Section 24
(a) If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall...
- Massachusetts General Laws - Disbursements from income - Chapter 203D, Section 25
A trustee shall make the following disbursements from income if they are not disbursements to which clause (ii) or (iii) of paragraph (2) of section...
- Massachusetts General Laws - Disbursements from principal - Chapter 203D, Section 26
(a) A trustee shall make the following disbursements from principal: (1) such of the disbursements described in clause (1) of section 25 as are not...
- Massachusetts General Laws - Transfers from income to principal for depreciation - Chapter 203D, Section 27
(a) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but...
- Massachusetts General Laws - Transfers from income to reimburse principal - Chapter 203D, Section 28
If an amount chargeable to income is unusually large, a trustee may pay all or any part of such amount from principal and shall reimburse...
- Massachusetts General Laws - Income taxes - Chapter 203D, Section 29
(a) A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income. (b) A tax required...
Last modified: September 11, 2015