58-9-404. Principal receipts.
58-9-404
58-9-404. Principal receipts.A trustee shall allocate toprincipal:
(1) To the extent not allocated to income under this act, assets receivedfrom a transferor during the transferor's lifetime, a decedent'sestate, a trust with aterminating income interest, or a payer under a contract naming the trust oritstrustee as beneficiary;
(2) money or other property received from the sale, exchange, liquidation,orchange in form of a principal asset, including realized profit, subject to thispart;
(3) amounts recovered from third parties to reimburse the trust because ofdisbursements described in subsection (a)(7) ofK.S.A. 58-9-502 andamendmentsthereto or for other reasons to the extent notbased on the loss of income;
(4) proceeds of property taken by eminent domain, but a separate awardmade for the loss of income with respect to an accounting period during which acurrent income beneficiary had a mandatory income interest is income;
(5) net income received in an accounting period during which there is nobeneficiary to whom a trustee may or must distribute income; and
(6) other receipts as provided inK.S.A. 58-9-408 through 58-9-415andamendmentsthereto.
History: L. 2000, ch. 61, § 13; July 1.