469.421. Mandatory income interest, undistributed income, paid when.
Mandatory income interest, undistributed income, paid when.
469.421. 1. For purposes of this section, the phrase "undistributedincome" means net income received before the date on which an incomeinterest ends. The phrase does not include an item of income or expensethat is due or accrued, or net income that has been added or is required tobe added to principal under the terms of the trust.
2. When a mandatory income interest ends, the trustee shall pay to amandatory income beneficiary who survives that date, or the estate of adeceased mandatory income beneficiary whose death causes the interest toend, the beneficiary's share of the undistributed income that is notdisposed of under the terms of the trust unless the beneficiary has anunqualified power to revoke more than five percent of the trust immediatelybefore the income interest ends. In the latter case, the undistributedincome from the portion of the trust that may be revoked shall be added toprincipal.
3. When a trustee's obligation to pay a fixed annuity or a fixedfraction of the value of the trust's assets ends, the trustee shall proratethe final payment if and to the extent required by applicable law toaccomplish a purpose of the trust or its settlor relating to income, gift,estate or other tax requirements.
(L. 2001 H.B. 241)