reglab/housing_qa huggingface dataset:
MI Comp L § 555.503 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 1 - (555.501...555.505)|Section 555.503 - Duties of Fiduciary; Allocation of Receipts and Disbursements to or Between Principal and Income; Discretionary Power; Impartiality.

555.503 Duties of fiduciary; allocation of receipts and disbursements to or between principal and income; discretionary power; impartiality. Sec. 103.  (1) In allocating receipts and disbursements to or between principal and income, and with respect to any matter found within the scope of articles 2 and 3, a fiduciary shall do all of the following:  (a) Administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this act.  (b) Administer a trust or estate in accordance with this act if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration.  (c) Add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this act do not provide a rule for allocating the receipt or disbursement to or between principal and income.  (2) A fiduciary may administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted under this act.  (3) In exercising the power to adjust under section 104 or a discretionary power of administration regarding a matter within the scope of this act, whether granted by the terms of a trust or a will, or as provided in this act, a fiduciary shall administer a 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 1 or more of the beneficiaries. A determination in accordance with this act is presumed to be fair and reasonable to all of the beneficiaries. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.602 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 2 - (555.601...555.602)|Section 555.602 - Beneficiary's Share of Net Income; Determination; Maintenance of Records by Fiduciary.

555.602 Beneficiary's share of net income; determination; maintenance of records by fiduciary. Sec. 202.  (1) Each beneficiary described in section 201(d) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. For purposes of this section, the fiduciary may estimate the value of assets for which market values are not readily available. If a fiduciary makes more than 1 distribution of assets to beneficiaries to whom this section applies, each beneficiary, including a beneficiary who does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of death or terminating event or earlier distribution date but has not distributed as of the current distribution date.  (2) In determining a beneficiary's share of net income, the following apply:  (a) The beneficiary is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold to meet principal obligations.  (b) The beneficiary's fractional interest in the undistributed principal assets must be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts not in trust.  (c) The beneficiary's fractional interest in the undistributed principal assets must be calculated on the basis of the aggregate value of those assets as of the distribution date without reducing the value by any unpaid principal obligation.  (d) The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.  (3) If a fiduciary does not distribute all of the collected but undistributed net income to each person as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income.  (4) A fiduciary may apply the provisions in this section, to the extent that the fiduciary considers it appropriate, to net gain or loss realized after the date of death or terminating event or earlier distribution date from the disposition of a principal asset if this section applies to the income from the asset. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.701 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 3 - (555.701...555.703)|Section 555.701 - Income Interest; Beginning and Ending Date; Conditions.

555.701 Income interest; beginning and ending date; conditions. Sec. 301.  (1) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.  (2) An asset becomes subject to a trust on 1 of the following:  (a) The date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life.  (b) The date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate.  (c) The date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.  (3) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (4), even if there is an intervening period of administration to wind up the preceding income interest.  (4) An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.702 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 3 - (555.701...555.703)|Section 555.702 - Allocation of Income Receipt or Disbursement; Occurrence of Due Date; Accrual.

555.702 Allocation of income receipt or disbursement; occurrence of due date; accrual. Sec. 302.  (1) Except as provided in section 201(a), a trustee shall allocate an income receipt or disbursement to principal if its due date occurs before the decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.  (2) A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which the decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement shall be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which the decedent dies or an income interest begins shall be allocated to principal and the balance shall be allocated to income.  (3) An item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this act. Distributions to shareholders or other owners from an entity to which section 401 applies are considered to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.703 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 3 - (555.701...555.703)|Section 555.703 - Undistributed Income.

555.703 Undistributed income. Sec. 303.  (1) As used in this section, “undistributed income” means net income received before the date on which an income interest ends. Undistributed income does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.  (2) Except as otherwise provided in this subsection, when a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased 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. If the beneficiary has an unqualified power to revoke more than 5% of the trust immediately before the income interest ends, the undistributed income from the portion of the trust that may be revoked shall be added to principal.  (3) When a trustee's obligation to pay a fixed annuity or a fixed fraction 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 settlor relating to income, gift, estate, or other tax requirements. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.801 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 4 - (555.801...555.815)|Section 555.801 - “Entity” Defined; Allocation to Income Money Received; Allocation of Receipts to Principal; Money Received in Partial Liquidation; Limitation; Statement by Entity on Source or Character of Distribution.

555.801 “Entity” defined; allocation to income money received; allocation of receipts to principal; money received in partial liquidation; limitation; statement by entity on source or character of distribution. Sec. 401.  (1) As used in this section, “entity” means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or other organization in which a trustee has an interest, other than a trust or estate to which section 402 applies, a business or other activity to which section 403 applies, or an asset-backed security to which section 415 applies.  (2) Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.  (3) A trustee shall allocate the following receipts from an entity to principal:  (a) Property other than money.  (b) Money received in 1 distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity.  (c) Money received in total liquidation of the entity, or in partial liquidation of the entity as prescribed by subsections (4) and (5).  (d) Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.  (4) Money is received in partial liquidation under either of the following circumstances:  (a) To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation.  (b) If the total amount of money and property received in a distribution or series of related distributions is greater than 20% of the entity's gross assets, as shown by the entity's year-end financial statements immediately preceding the initial receipt.  (5) Money is not received in partial liquidation, nor may it be taken into account under subsection (4)(b), to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money.  (6) A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.802 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 4 - (555.801...555.815)|Section 555.802 - Income; Principal; Allocation of Amounts Received as Distributions From Trust or Purchased Interest.

555.802 Income; principal; allocation of amounts received as distributions from trust or purchased interest. Sec. 402.  A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, section 401 or 415 applies to a receipt from the trust. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.803 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 4 - (555.801...555.815)|Section 555.803 - Separate Accounting for Business or Other Activity.

555.803 Separate accounting for business or other activity. Sec. 403.  (1) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.  (2) A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts shall be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of business.  (3) A business or other activity for which a trustee may maintain separate accounting records include all of the following:  (a) A retail, manufacturing, service, and other traditional business activity.  (b) Farming.  (c) Raising and selling livestock and other animals.  (d) Management of rental property.  (e) Extraction of minerals and other natural resources.  (f) A timber operation.  (g) An activity to which section 414 applies. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.804 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 4 - (555.801...555.815)|Section 555.804 - Principal; Allocations.

555.804 Principal; allocations. Sec. 404.  A trustee shall allocate to principal all of the following:  (a) To the extent not allocated to income under this act, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary.  (b) Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this article.  (c) Amounts recovered from third parties to reimburse the trust because of disbursements described in section 502(1)(g) or for other reasons to the extent not based on the loss of income.  (d) Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income.  (e) Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income.  (f) Other receipts as provided in sections 408 to 415 of this article. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.805 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 4 - (555.801...555.815)|Section 555.805 - Receipts From Rental Property.

555.805 Receipts from rental property. Sec. 405.  To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, shall be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.806 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 4 - (555.801...555.815)|Section 555.806 - Interest Received; Allocation to Income; Proceeds of Sale; Allocation to Principal.

555.806 Interest received; allocation to income; proceeds of sale; allocation to principal. Sec. 406.  (1) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, shall be allocated to income without any provision for amortization of premium.  (2) A trustee shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than 1 year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within 1 year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income.  (3) This section does not apply to an obligation to which section 409, 410, 411, 412, 414, or 415 applies. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.807 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 4 - (555.801...555.815)|Section 555.807 - Life Insurance Proceeds; Other Contracts; Allocations.

555.807 Life insurance proceeds; other contracts; allocations. Sec. 407.  (1) Except as otherwise provided in subsection (2), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income and to principal if the premiums are paid from principal.  (2) A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to section 403, loss of profits from a business.  (3) This section does not apply to a payment to which section 409 applies. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.808 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 4 - (555.801...555.815)|Section 555.808 - Insubstantial Allocation.

555.808 Insubstantial allocation. Sec. 408.  If a trustee determines that an allocation between principal and income required by section 409, 410, 411, 412, or 415 is insubstantial, the trustee may allocate the entire amount to principal unless 1 or more of the circumstances described in section 104(4) apply to the allocation. This power may be exercised by a cofiduciary in the circumstances described in section 104(5) and may be released for the reasons and in the manner described in section 104(6). An allocation is presumed to be insubstantial if 1 or more of the following apply:  (a) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10%.  (b) The value of the asset producing the receipt for which the allocation would be made is less than 10% of the total value of the trust's assets at the beginning of the accounting period. History: 2004, Act 159, Eff. Sept. 1, 2004
MI Comp L § 555.810 (2021)
2021 Michigan Compiled Laws|Chapter 555 - Uses and Trusts|Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)|Article 4 - (555.801...555.815)|Section 555.810 - Liquidating Asset; Allocation of Receipts.

555.810 Liquidating asset; allocation of receipts. Sec. 410.  (1) As used in this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. Liquidating asset includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than 1 year under an arrangement that does not provide for the payment of interest on the unpaid balance. Liquidating asset does not include a payment subject to section 409, natural resources subject to section 411, timber subject to section 412, an activity subject to section 414, an asset subject to section 415, or an asset for which the trustee establishes a reserve for depreciation under section 503.  (2) A trustee shall allocate to income 10% of the receipts from a liquidating asset and the balance to principal. History: 2004, Act 159, Eff. Sept. 1, 2004