68-10-303. APPORTIONMENT WHEN INCOME INTEREST ENDS. (a) In this sec-
tion, "undistributed income" means net income received before the date on
which an income interest ends. The term does not include an item of income
or expense that is due or accrued or net income that has been added or is re-
quired to be added to principal under the terms of the trust.
(b) When a mandatory income interest ends, the trustee shall pay to a
mandatory income beneficiary who survives that date, or the estate of a de-
ceased mandatory income beneficiary whose death causes the interest to end,
the beneficiary's share of the undistributed income that is not disposed of
under the terms of the trust unless the beneficiary has an unqualified power
to revoke more than five percent (5%) of the trust immediately before the in-
come interest ends. In the latter case, the undistributed income from the
portion of the trust that may be revoked must be added to principal.
(c) When a trustee's obligation to pay a fixed annuity or a fixed frac-
tion of the value of the trust's assets ends, the trustee shall prorate the
final payment if and to the extent required by applicable law to accomplish
a purpose of the trust or its trustor relating to income, gift, estate, or
other tax requirements.
[68-10-303, added 2001, ch. 261, sec. 2, p. 951.]
PART 4.
ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST