§ 37A-3-303. Apportionment when income interest ends.
§ 37A‑3‑303. Apportionment when income interest ends.
(a) In this section,"undistributed income" means net income received before the date onwhich an income interest ends. The term does not include an item of income orexpense that is due or accrued or net income that has been added or is requiredto be added to principal under the terms of the trust.
(b) When a mandatoryincome interest ends, the trustee shall pay to a mandatory income beneficiarywho survives that date, or to the estate of a deceased mandatory incomebeneficiary whose death causes the interest to end, the beneficiary's share ofthe undistributed income that is not disposed of under the terms of the trustunless the beneficiary has an unqualified power to revoke more than fivepercent (5%) of the trust immediately before the income interest ends. In thelatter case, the undistributed income from the portion of the trust that may berevoked shall be added to principal.
(c) When a trustee'sobligation to pay a fixed annuity or a fixed fraction of the value of thetrust's assets ends, the trustee shall prorate the final payment if and to theextent required by applicable law to accomplish a purpose of the trust or itssettlor relating to income, gift, estate, or other tax requirements. (2003‑232, s. 2.)