Income interest; asset subject to trust
Sec. 20. (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:
(1) on 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) on 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; or
(3) on 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.
As added by P.L.84-2002, SEC.2.
Last modified: May 27, 2006