Sec. 45a-542t. Timber.
Sec. 45a-542t. Timber. (a) To the extent that a trustee accounts for receipts from
the sale of timber and related products pursuant to this section, the trustee shall allocate
the net receipts:
(1) To income to the extent that the amount of timber removed from the land does
not exceed the rate of growth of the timber during the accounting periods in which a
beneficiary has a mandatory income interest;
(2) To principal to the extent that the amount of timber removed from the land
exceeds the rate of growth of the timber or the net receipts are from the sale of standing
timber;
(3) To or between income and principal if the net receipts are from the lease of
timberland or from a contract to cut timber from land owned by a trust, by determining
the amount of timber removed from the land under the lease or contract and applying
the rules in subdivisions (1) and (2) of this subsection; or
(4) To principal to the extent that advance payments, bonuses, and other payments
are not allocated pursuant to subdivision (1), (2) or (3) of this subsection.
(b) In determining net receipts to be allocated pursuant to subsection (a) of this
section, a trustee shall deduct and transfer to principal a reasonable amount for depletion.
(c) Sections 45a-542 to 45a-542ff, inclusive, apply whether or not a decedent or
transferor was harvesting timber from the property before it became subject to the trust.
(d) If a trust owns an interest in timberland on January 1, 2000, the trustee may
allocate net receipts from the sale of timber and related products as provided in sections
45a-542 to 45a-542ff, inclusive, or in the manner used by the trustee before January 1,
2000. If the trust acquires an interest in timberland after January 1, 2000, the trustee
shall allocate net receipts from the sale of timber and related products as provided in
sections 45a-542 to 45a-542ff, inclusive.
(P.A. 99-164, S. 21, 36.)
History: P.A. 99-164 effective January 1, 2000.