14-7407. When right to income begins and ends
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 specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.
B. An asset becomes subject to a trust on any of the following dates:
1. The date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life.
2. The date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate.
3. The date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.
C. An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection D, even if there is an intervening period of administration to wind up the preceding income interest.
D. An income interest ends on the day before an income beneficiary dies or another terminating event occurs or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.
Section: Previous 14-6311 14-7401 14-7402 14-7403 14-7404 14-7405 14-7406 14-7407 14-7408 14-7409 14-7410 14-7411 14-7412 14-7413 14-7414 NextLast modified: October 13, 2016