If a trustee determines that an allocation between principal and income required by AS 13.38.690 , 13.38.700, 13.38.710, 13.38.720, or 13.38.750 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in AS 13.38.210(c) applies to the allocation. This power may be exercised by a co-trustee in the circumstances described in AS 13.38.210 (d) and may be released for the reasons and in the manner described in AS 13.38.210(e). An allocation is presumed to be insubstantial if
(1) the amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than five percent; or
(2) the value of the asset producing the receipt for which the allocation would be made is less than five percent of the total value of the trust's assets at the beginning of the accounting period.
Section: Previous 13.38.610 13.38.620 13.38.630 13.38.640 13.38.650 13.38.660 13.38.670 13.38.680 13.38.690 13.38.700 13.38.710 13.38.720 13.38.730 13.38.740 13.38.750 NextLast modified: November 15, 2016