reglab/housing_qa huggingface dataset:
MN Stat § 501C.1101 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1101 — Definitions.

501C.1101 DEFINITIONS. Subdivision 1. Scope. The definitions in this section apply to sections 501C.1101 to 501C.1118. Subd. 2. Accounting period. "Accounting period" means a calendar year unless another 12-month period is selected by the trustee. Accounting period includes a portion of a calendar year or other 12-month period that begins when an income interest begins or ends when an income interest ends. Subd. 3. Income beneficiary. "Income beneficiary" means the person to whom income is presently payable or for whom it is accumulated for distribution as income. Subd. 4. Inventory value. "Inventory value" means the cost of property purchased by the trustee and the market value of other property at the time it became subject to the trust, but in the case of a testamentary trust the trustee may use any value finally determined for the purposes of an estate or inheritance tax. Subd. 5. Remainderperson. "Remainderperson" means the person entitled to principal, including income accumulated and added to principal. History:   2015 c 5 art 11 s 1
MN Stat § 501C.1102 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1102 — Duty Of Trustee As To Receipts And Expenditure.

501C.1102 DUTY OF TRUSTEE AS TO RECEIPTS AND EXPENDITURE. Subdivision 1. General rules of administration. A trust must be administered with due regard to the respective interests of income beneficiaries and remainderpersons. A trust is so administered with respect to the allocation of receipts and expenditures if a receipt is credited or an expenditure is charged to income or principal or partly to each: (1) in accordance with the terms of the trust instrument, notwithstanding contrary provisions of sections 501C.1101 to 501C.1118; (2) in the absence of contrary terms of the trust instrument, in accordance with sections 501C.1101 to 501C.1118; (3) if neither of the preceding rules of administration is applicable, in accordance with what is reasonable and equitable in view of the interests of those entitled to income as well as of those entitled to principal, and in view of the manner in which persons of ordinary prudence, discretion, and judgment would act in the management of their own affairs. Subd. 2. Trustee's discretion. If a trust instrument gives the trustee discretion in crediting a receipt or charging an expenditure to income or principal or partly to each, no inference of imprudence or partiality arises from the fact that the trustee has made an allocation contrary to sections 501C.1101 to 501C.1118. Subd. 3. Standards for exercise. In exercising a power to adjust under section 501C.1112 or a discretionary power of administration regarding a matter within the scope of sections 501C.1101 to 501C.1118, a fiduciary shall administer the trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intention that the fiduciary shall or may favor one or more of the beneficiaries. A determination in accordance with sections 501C.1101 to 501C.1118 is presumed to be fair and reasonable to all of the beneficiaries. History:   2015 c 5 art 11 s 2
MN Stat § 501C.1103 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1103 — Income; Principal; Charges.

501C.1103 INCOME; PRINCIPAL; CHARGES. Subdivision 1. Income defined. "Income" means the return in money or property derived from the use of principal, including return received as: (1) rent of real or personal property, including sums received for cancellation or renewal of a lease; (2) interest on money lent, including sums received as consideration for the privilege of prepayment of principal, except as provided in section 501C.1107 on bond premium and bond discount; (3) income earned during administration of a decedent's estate as provided in section 501C.1105; (4) corporate distributions as provided in section 501C.1106; (5) accrued increment on bonds or other obligations issued at discount as provided in section 501C.1107; (6) receipts from business and farming operations as provided in section 501C.1108; (7) receipts from disposition of natural resources as provided in sections 501C.1109 and 501C.1110; and (8) receipts from other principal subject to depletion as provided in section 501C.1111. Subd. 2. Principal defined. "Principal" means the property set aside by the owner or the person legally empowered so that it is held in trust eventually to be delivered to a remainderperson while the return or use of the principal is in the meantime taken or received by or held for accumulation for an income beneficiary. Principal includes: (1) consideration received by the trustee on the sale or other transfer of principal, on repayment of a loan, or as a refund, replacement, or change in the form of principal; (2) proceeds of property taken on eminent domain proceedings; (3) proceeds of insurance on property forming part of the principal, except proceeds of insurance on a separate interest of an income beneficiary; (4) stock dividends, receipts on liquidation of a corporation, and other corporate distributions as provided in section 501C.1106; (5) receipts from the disposition of corporate securities as provided in section 501C.1107; (6) royalties and other receipts from disposition of natural resources as provided in sections 501C.1109 and 501C.1110; (7) receipts from other principal subject to depletion as provided in section 501C.1111; (8) profit resulting from a change in the form of principal; (9) allowances for depreciation established under sections 501C.1108 and 501C.1113, subdivision 1, clause (2); and (10) gain or loss, including the purchase premium, if any, from the grant of an option to buy or sell property of the trust, whether or not the trust owns the property when the option is granted. Subd. 3. Charges. After determining income and principal in accordance with the terms of the trust instrument or of sections 501C.1101 to 501C.1118, the trustee shall charge to income or principal expenses and other charges as provided in section 501C.1113. History:   2015 c 5 art 11 s 3
MN Stat § 501C.1104 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1104 — When Right To Income Arises; Apportionment Of Income.

501C.1104 WHEN RIGHT TO INCOME ARISES; APPORTIONMENT OF INCOME. Subdivision 1. General rule. An income beneficiary is entitled to income from the date specified in the trust instrument or, if none is specified, from the date an asset becomes subject to the trust. In the case of an asset that becomes subject to a trust because of the death of any person, it becomes subject to the trust as of the date of the death of the person or, if later, the date the estate or trust becomes entitled to the asset if acquired after the death of the person, even though there is an intervening period of administration of an estate or trust during which the beneficiary may have no right to a distribution of the income. Subd. 2. Receipts due but not paid; periodic payments. In the administration of a decedent's estate or an asset that becomes subject to a trust by reason of a will: (1) receipts due but not paid at the date of death of the testator are principal; (2) receipts in the form of periodic payments, other than corporate distributions to stockholders, including rent, interest, or annuities, not due at the date of the death of the testator must be treated as accruing from day to day. That portion of the receipt that accrues before the date of death is principal, and the balance is income. Subd. 3. Other receipts. In all other cases, any receipt from an income-producing asset is income even though the receipt was earned or accrued in whole or in part before the date when the asset became subject to the trust. Subd. 4. Termination of income interest. On termination of an income interest, the income beneficiary whose interest is terminated, or the income beneficiary's estate, is entitled to: (1) income undistributed on the date of termination; (2) income due but not paid to the trustee on the date of termination; and (3) income in the form of periodic payments, other than corporate distributions to stockholders, including rent, interest, or annuities, not due on the date of termination, accrued from day to day. Subd. 5. Corporate distributions to stockholders. Corporate distributions to stockholders must be treated as due on the day fixed by the corporation for determination of stockholders of record entitled to distribution or, if no date is fixed, on the date of declaration of the distribution by the corporation. Subd. 6. Income payable to spouse. If a gift or bequest is made in trust that is intended to qualify for the federal estate tax deduction for transfers under section 2056 of the Internal Revenue Code of 1986, as amended, or the federal gift tax deduction under section 2523 of the Internal Revenue Code of 1986, as amended, all distributions of income to the transferor's spouse shall not be made less frequently than annually. History:   2015 c 5 art 11 s 4
MN Stat § 501C.1107 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1107 — Bond Premium And Discount.

501C.1107 BOND PREMIUM AND DISCOUNT. Subdivision 1. Principal. Bonds or other obligations for the payment of money are principal at their inventory value, except as provided in subdivision 2 for discount bonds. No provision may be made for amortization of bond premiums or for accumulation for discount. The proceeds of sale, redemption, or other disposition of the bonds or obligations are principal. Subd. 2. Income. The increment in value realized upon sale, redemption, or other disposition of a bond or other obligation for the payment of money bearing no stated interest but payable or redeemable at maturity or at a future time at an amount in excess of the amount in consideration of which it was issued or in accordance with a fixed schedule of appreciation, is distributable as income. The increment in value is distributable to the beneficiary who was the income beneficiary at the time of increment from the first principal cash available or, if none is available, when realized by sale, redemption, or other disposition. Whenever unrealized increment is distributed as income but out of principal, the principal must be reimbursed for the increment when realized. History:   2015 c 5 art 11 s 7
MN Stat § 501C.1108 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1108 — Sole Proprietorships.

501C.1108 SOLE PROPRIETORSHIPS. Subdivision 1. Separate account. (a) A trustee who conducts a business or other activity as a sole proprietor may establish and maintain a separate account for the transactions of the business or other activity, whether or not its assets are segregated from other trust assets, if the trustee determines that it is in the best interest of all the beneficiaries to establish a separate account instead of accounting for the business or other activity as part of the trust's general accounting records. (b) A trustee who establishes a separate account for a business or other activity shall determine the extent to which its net cash receipts will be retained in the separate account for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity or will be transferred out of the separate account and accounted for as principal or income in the trust's general accounting records as the trustee reasonably and equitably determines. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, and determines that any portion of the amount received is no longer required in the conduct of the business, the trustee shall transfer that portion out of the separate account and shall account for that portion as principal in the trust's general accounting records. (c) A trustee may not account separately for a traditional securities portfolio to avoid the provisions of sections 501C.1101 to 501C.1118 that otherwise apply to securities. Subd. 2. Other income or losses. If a trustee does not maintain a separate account for a business or other activity conducted as a sole proprietorship, the net profits of the sole proprietorship in any fiscal or calendar year, as reasonably and equitably determined by the trustee, must be allocated to income while any net loss in that year must be charged to principal and must not be carried into any other fiscal or calendar year for purposes of calculating net income. History:   2015 c 5 art 11 s 8
MN Stat § 501C.1109 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1109 — Disposition Of Natural Resources.

501C.1109 DISPOSITION OF NATURAL RESOURCES. Subdivision 1. Allocation of receipts. (a) If a part of the principal consists of a right to receive royalties, overriding or limited royalties, working interests, production payments, net profit interests, or other interests in minerals or other natural resources in, on, or under land, the receipts from taking the natural resources from the land must be allocated under paragraphs (b) to (d). (b) If received as rent on a lease or extension payments on a lease, the receipts are income. (c) If received from a production payment carved out of a mineral property, the receipts are income to the extent of a factor for interest or its equivalent provided in the governing instrument or a greater amount determined by the trustee to be reasonable and equitable in view of the interests of those entitled to income as well as those entitled to principal. The receipts not allocated to income are principal. (d) If received as a royalty, overriding or limited royalty, or bonus or from a working, net profit, or other interest in minerals or other natural resources, receipts not provided for in paragraph (b) or (c) must be apportioned on a yearly basis in accordance with this paragraph whether or not any natural resource was being taken from the land at the time the trust was established. The receipts from these properties must be allocated in accordance with what is reasonable and equitable in view of the interests of those entitled to income as well as of those entitled to principal. The amount allocated to principal must be presumed to be reasonable and equitable if it is neither substantially more nor less than the amount allowable as a deduction for depletion, amortization, depreciation, or similar costs under the Internal Revenue Code of 1986. Any allocated amount must be added to principal as an allowance for depletion of the asset. The balance of the gross receipts, after payment from the receipts of all direct and indirect expenses, is income. Subd. 2. Timber excepted. This section does not apply to timber. History:   2015 c 5 art 11 s 9
MN Stat § 501C.1110 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1110 — Timber.

501C.1110 TIMBER. Subdivision 1. Net receipts. If a part of the principal consists of land from which merchantable timber may be removed, the net receipts from taking the timber from the land must be allocated as follows: (1) to income to the extent that the amount of timber removed from the land during the accounting period does not exceed the rate of growth of the timber; (2) to principal to the extent that the amount of timber removed from the land during the accounting period 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 clause (1) or (2); or (4) to principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to clause (1), (2), or (3). Subd. 2. Depletion. In determining net receipts to be allocated pursuant to subdivision 1, a trustee shall deduct and transfer to principal a reasonable amount for depletion. Subd. 3. Scope. This section applies whether or not timber was harvested from the property before it became subject to the trust. History:   2015 c 5 art 11 s 10
MN Stat § 501C.1111 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1111 — Annuities, Qualified And Nonqualified Employee Compensation, Retirement Plans And Other Property Subject To Depletion.

501C.1111 ANNUITIES, QUALIFIED AND NONQUALIFIED EMPLOYEE COMPENSATION, RETIREMENT PLANS AND OTHER PROPERTY SUBJECT TO DEPLETION. Except as provided in sections 501C.1109 and 501C.1110, if part of the principal consists of property subject to depletion, including leaseholds, patents, copyrights, royalty rights, rights to receive payments on a contract for deferred compensation, qualified and nonqualified employer retirement plans, individual retirement accounts, and annuities, the receipts from the property must be allocated in accordance with what is reasonable and equitable in view of the interests of those entitled to income as well as of those entitled to principal. The trustee may determine the allocation based on a fixed percentage of each payment, an amortization of the inventory value of the series of payments, or, if the individual retirement account, pension, profit-sharing, stock-bonus, or stock-ownership plan consists of segregated and identifiable assets, the trustee may apply the provisions of sections 501C.1101 to 501C.1118 to the receipts in the account or plan in order to characterize the payments received during a trust accounting period. To the extent that a payment is characterized by the payer as interest or a dividend or a payment made in lieu of interest or a dividend, a trustee shall allocate it to income. The amount allocated to principal is presumed to be reasonable and equitable if it is neither substantially more nor less than the amount allowable as a deduction for depletion, amortization, depreciation, or similar costs under the Internal Revenue Code of 1986. History:   2015 c 5 art 11 s 11
MN Stat § 501C.1114 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1114 — Nontrust Estates.

501C.1114 NONTRUST ESTATES. Subdivision 1. Limitations. Sections 501C.1101 to 501C.1118 apply to nontrust estates, subject to: (1) agreement of the parties; (2) specific direction in the instrument creating the nontrust estates; (3) subdivision 2; and (4) other applicable statutes. References in sections 501C.1101 to 501C.1118 to trusts and trustees must be read as applying to nontrust estates and to tenants and remainderpersons as the context requires. Subd. 2. Application. (a) In applying sections 501C.1101 to 501C.1118 to nontrust estates, the rules in paragraphs (b) to (e) must be followed. (b) A legal life tenant or a remainderperson who has incurred a charge for the tenant's or remainderperson's benefit without the consent or agreement of the other, shall pay the charge in full. (c) Costs of an improvement, including special taxes or assessments representing an addition to value of property forming part of the principal that cannot reasonably be expected to outlast the legal life estate, must be paid by the legal life tenant. (d) If the improvement can reasonably be expected to outlast the legal life estate, only a portion of the costs must be paid by the legal life tenant and the balance by the remainderperson. (1) The portion payable by the legal life tenant is that fraction of the total found by dividing the present value of the legal life estate by the present value of an estate of the same form as that of the legal life estate but limited to a period corresponding to the reasonably expected duration of the improvement. (2) The present value of the legal life estate must be computed by applying the federal estate tax regulations for the calculation of the value of life estates under section 2031 of the Internal Revenue Code of 1986. The federal estate tax regulations applied must be those in force on the date when the costs of the improvement are initially determined by assessment, agreement, or otherwise. No other evidence of duration or expectancy may be considered. (e) No allowance may be made for depreciation of property held by a legal life tenant on January 1, 1990, if the life tenant was not making the allowance with respect to the property prior to January 1, 1990. History:   2015 c 5 art 11 s 14
MN Stat § 501C.1115 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1115 — Application.

501C.1115 APPLICATION. Except as specifically provided in the governing instrument, Minnesota Statutes 1988, sections 501.48 to 501.63, apply to a receipt or expense received or incurred after January 1, 1970, and before January 1, 1990, by any trust or decedent's estate whether established before or after January 1, 1970, and whether the asset involved was acquired by the trustee before or after January 1, 1970. Except as specifically provided in the governing instrument, sections 501C.1101 to 501C.1118 apply to a receipt or expense received or incurred after December 31, 1989, by a trust or decedent's estate whether established before, on, or after January 1, 1990, and whether the asset involved or legal estate was acquired by the trustee, personal representative, legal life tenant, or remainderperson before, on, or after January 1, 1990. History:   2015 c 5 art 11 s 15
MN Stat § 501C.1116 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1116 — Ascertainment Of Income Or Principal.

501C.1116 ASCERTAINMENT OF INCOME OR PRINCIPAL. Sections 501C.1101 to 501C.1118 do not govern the ascertainment of what constitutes the receipt of income or principal by the estate or trust for income tax purposes. History:   2015 c 5 art 11 s 16
MN Stat § 501C.1117 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1117 — Uniformity Of Interpretation.

501C.1117 UNIFORMITY OF INTERPRETATION. Sections 501C.1101 to 501C.1118 must be so construed as to effectuate their general purpose to make uniform the law of those states that enact them. History:   2015 c 5 art 11 s 17
MN Stat § 501C.1118 (2021)
2021 Minnesota Statutes|Chapters 500 - 515B — Property And Property Interests|Chapter 501C — Trusts|Section 501C.1118 — Short Title.

501C.1118 SHORT TITLE. Sections 501C.1101 to 501C.1117 may be cited as the Uniform Principal and Income Act. History:   2015 c 5 art 11 s 18