Sec. 45a-542e. Distribution to beneficiaries.
Sec. 45a-542e. Distribution to beneficiaries. (a) Each beneficiary described in
subdivision (4) of section 45a-542d is entitled to receive a portion of the net income equal
to the beneficiary's fractional interest in undistributed principal assets, using values as
of the distribution date. If a fiduciary makes more than one distribution of assets to
beneficiaries to whom this section applies, each beneficiary, including one who does
not receive part of the distribution, is entitled, as of each distribution date, to the net
income the fiduciary has received after the date of death or terminating event or earlier
distribution date but has not distributed as of the current distribution date.
(b) In determining a beneficiary's share of net income, the following rules apply:
(1) The beneficiary is entitled to receive a portion of the net income equal to the
beneficiary's fractional interest in the undistributed principal assets immediately before
the distribution date, including assets that later may be sold to meet principal obligations.
(2) The beneficiary's fractional interest in the undistributed principal assets must
be calculated without regard to property specifically given to a beneficiary and property
required to pay pecuniary amounts not in trust.
(3) The beneficiary's fractional interest in the undistributed principal assets must
be calculated on the basis of the aggregate value of those assets as of the distribution
date without reducing the value by any unpaid principal obligation.
(c) If a fiduciary does not distribute all of the collected but undistributed net income
to each person as of a distribution date, the fiduciary shall maintain appropriate records
showing the interest of each beneficiary in that net income.
(d) A fiduciary may apply the rules in this section, to the extent that the fiduciary
considers it appropriate to net gain or loss realized after the date of death or terminating
event or earlier distribution date from the disposition of a principal asset if this section
applies to the income from the asset.
(P.A. 99-164, S. 6, 36.)
History: P.A. 99-164 effective January 1, 2000.