reglab/housing_qa huggingface dataset:
NC Gen Stat § 37A-1-104.25 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 1 - Definitions and Fiduciary Duties; Conversion to Unitrust; Judicial Control of Discretionary Power.|§ 37A-1-104.25 - Determination of character of unitrust amount.

 37A-1-104.25. Determination of character of unitrust amount.Unless the terms of the governing instrument of the express total return unitrust specifically provide otherwise, the trustee:(1) Shall consider the unitrust amount as paid from net accounting income determined as if the trust were not a unitrust;(2) Shall then consider the unitrust amount as paid from ordinary income not allocable to net accounting income;(3) May, in the trustee's discretion, consider the unitrust amount as paid from net short-term gain described in section 1222(5) of the Code and then from net long-term capital gain described in section 1222(7) of the Code so long as this discretionary power is exercised consistently and in a reasonable and impartial manner, but the amount so paid from net capital gains may not be greater than the excess of the unitrust amount over the amount of distributable net income as defined in section 643(a) of the Code without regard to section 1.643(a)-3(b) of the treasury regulations; and(4) Shall then consider the unitrust amount as coming from the principal of the trust. (2005-244, s. 6.)
NC Gen Stat § 37A-1-104.26 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 1 - Definitions and Fiduciary Duties; Conversion to Unitrust; Judicial Control of Discretionary Power.|§ 37A-1-104.26 - Unitrust amount in excess of a five percent payout.

 37A-1-104.26. Unitrust amount in excess of a five percent payout.A trust that provides for a fixed percentage payout in excess of five percent (5%) per year is considered an express total return unitrust that pays out a fixed percentage of five percent (5%) per year and pays out principal to the extent that the fixed percentage payout exceeds five percent (5%) per year. (2005-244, s. 6.)
NC Gen Stat § 37A-2-202 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 2 - Decedent's Estate or Terminating Income Interest.|§ 37A-2-202 - Distribution to residuary and remainder beneficiaries.

 37A-2-202. Distribution to residuary and remainder beneficiaries.(a) Each beneficiary described in G.S. 37A-2-201(4) 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. If a fiduciary makes more than one distribution of assets to beneficiaries to whom this section applies, each beneficiary, including one 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.(b) In determining a beneficiary's share of net income, the following rules apply:(1) 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.(2) The beneficiary's fractional interest in the undistributed principal assets shall be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts not in trust to which G.S. 37A-2-201(3) applies.(3) The beneficiary's fractional interest in the undistributed principal assets shall 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.(4) 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.(c) 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.(d) A fiduciary may apply the rules 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. (2003-232, s. 2; 2006-259, s. 13(p).)
NC Gen Stat § 37A-3-301 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 3 - Apportionment at Beginning and End of Income Interest.|§ 37A-3-301 - When right to income begins and ends.

 37A-3-301. When right to income begins and ends.(a) 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.(b) An asset becomes subject to a trust:(1) On 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;(2) On 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; or(3) On 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.(c) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (d) of this section, even if there is an intervening period of administration to wind up the preceding income interest.(d) 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. (2003-232, s. 2.)
NC Gen Stat § 37A-3-302 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 3 - Apportionment at Beginning and End of Income Interest.|§ 37A-3-302 - Apportionment of receipts and disbursements when decedent dies or income interest begins.

 37A-3-302. Apportionment of receipts and disbursements when decedent dies or income interest begins.(a) A trustee shall allocate an income receipt or disbursement, other than one to which G.S. 37A-2-201(1) applies to principal, if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.(b) A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a 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 a decedent dies or an income interest begins shall be allocated to principal, and the balance shall be allocated to income.(c) 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 Chapter. Distributions to shareholders or other owners from an entity to which G.S. 37A-4-401 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 shall be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals. (2003-232, s. 2.)
NC Gen Stat § 37A-3-303 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 3 - Apportionment at Beginning and End of Income Interest.|§ 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 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 required 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 to 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 unless the beneficiary has an unqualified power to revoke more than five percent (5%) of the trust immediately before the income interest ends. In the latter case, the undistributed income from the portion of the trust that may be revoked shall be added to principal.(c) 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. (2003-232, s. 2.)
NC Gen Stat § 37A-4-401 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 4 - Allocation of Receipts During Administration of Trust.|§ 37A-4-401 - Character of receipts.

 37A-4-401. Character of receipts.(a) In this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which G.S. 37A-4-402 applies, a business or activity to which G.S. 37A-4-403 applies, or an asset-backed security to which G.S. 37A-4-415 applies.(b) Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.(c) A trustee shall allocate the following receipts from an entity to principal:(1) Property other than money;(2) Money received in one distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;(3) Money received in total or partial liquidation of the entity; and(4) 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.(d) Money is received in partial liquidation:(1) To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or(2) If the total amount of money and property received in a distribution or series of related distributions is greater than twenty percent (20%) of the entity's gross assets, as shown by the entity's year-end financial statements immediately preceding the initial receipt.(e) Money is not received in partial liquidation, nor may it be taken into account under subdivision (2) of subsection (d) of this section, to the extent that it does not exceed the amount of income tax that a trustee or beneficiary shall pay on taxable income of the entity that distributes the money.(f) 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. (2003-232, s. 2.)
NC Gen Stat § 37A-4-402 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 4 - Allocation of Receipts During Administration of Trust.|§ 37A-4-402 - Distribution from trust or estate.

 37A-4-402. Distribution from trust or estate.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 the 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 a trust to a trustee, G.S. 37A-4-401 or G.S. 37A-4-415 applies to a receipt from the trust. (2003-232, s. 2.)
NC Gen Stat § 37A-4-403 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 4 - Allocation of Receipts During Administration of Trust.|§ 37A-4-403 - Business and other activities conducted by trustee.

 37A-4-403. Business and other activities conducted by trustee.(a) 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.(b) 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 the business.(c) Activities for which a trustee may maintain separate accounting records include:(1) Retail, manufacturing, service, and other traditional business activities;(2) Farming;(3) Raising and selling livestock and other animals;(4) Management of rental properties;(5) Extraction of minerals and other natural resources;(6) Timber operations; and(7) Activities to which G.S. 37A-4-414 applies. (2003-232, s. 2.)
NC Gen Stat § 37A-4-404 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 4 - Allocation of Receipts During Administration of Trust.|§ 37A-4-404 - Principal receipts.

 37A-4-404. Principal receipts.A trustee shall allocate to principal:(1) To the extent not allocated to income under this Chapter, 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;(2) 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;(3) Amounts recovered from third parties to reimburse the trust because of disbursements described in G.S. 37A-5-502(a)(7) or for other reasons to the extent not based on the loss of income;(4) 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;(5) Net income received in an accounting period during which there is no beneficiary to whom a trustee may or shall distribute income; and(6) Other receipts as provided in Part 3 of this Article. (2003-232, s. 2.)
NC Gen Stat § 37A-4-405 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 4 - Allocation of Receipts During Administration of Trust.|§ 37A-4-405 - Rental property.

 37A-4-405. Rental property.To the extent that a trustee accounts for receipts from rental property under 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. (2003-232, s. 2.)
NC Gen Stat § 37A-4-406 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 4 - Allocation of Receipts During Administration of Trust.|§ 37A-4-406 - Obligation to pay money.

 37A-4-406. Obligation to pay money.(a) 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.(b) 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 one 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 one 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 shall be allocated to income.(c) This section does not apply to an obligation to which G.S. 37A-4-409, 37A-4-410, 37A-4-411, 37A-4-412, 37A-4-414, or 37A-4-415 applies. (2003-232, s. 2.)
NC Gen Stat § 37A-4-407 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 4 - Allocation of Receipts During Administration of Trust.|§ 37A-4-407 - Insurance policies and similar contracts.

 37A-4-407. Insurance policies and similar contracts.(a) Except as otherwise provided in subsection (b) of this section, 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.(b) 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 G.S. 37A-4-403, loss of profits from a business.(c) This section does not apply to a contract to which G.S. 37A-4-409 applies. (2003-232, s. 2.)
NC Gen Stat § 37A-4-408 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 4 - Allocation of Receipts During Administration of Trust.|§ 37A-4-408 - Insubstantial allocations not required.

 37A-4-408. Insubstantial allocations not required.If a trustee determines that an allocation between principal and income required by G.S. 37A-4-409, 37A-4-410, 37A-4-411, 37A-4-412, or 37A-4-415 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in G.S. 37A-1-104(c) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in G.S. 37A-1-104(d) and may be released for the reasons and in the manner described in G.S. 37A-1-104(e). An allocation is presumed to be insubstantial if:(1) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten percent (10%); or(2) The value of the asset producing the receipt for which the allocation would be made is less than ten percent (10%) of the total value of the trust's assets at the beginning of the accounting period. (2003-232, s. 2.)
NC Gen Stat § 37A-4-410 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 4 - Allocation of Receipts During Administration of Trust.|§ 37A-4-410 - Liquidating asset.

 37A-4-410. Liquidating asset.(a) 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. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to G.S. 37A-4-409, resources subject to G.S. 37A-4-411, timber subject to G.S. 37A-4-412, an activity subject to G.S. 37A-4-414, an asset subject to G.S. 37A-4-415, or any asset for which the trustee establishes a reserve for depreciation under G.S. 37A-5-503.(b) A trustee shall allocate to income ten percent (10%) of the receipts from a liquidating asset and the balance to principal. (2003-232, s. 2.)
NC Gen Stat § 37A-4-411 (2021)
2021 North Carolina General Statutes|Chapter 37A - Uniform Principal and Income Act|Article 4 - Allocation of Receipts During Administration of Trust.|§ 37A-4-411 - Minerals, water, and other natural resources.

 37A-4-411. Minerals, water, and other natural resources.(a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources under this section, the trustee shall allocate them as follows:(1) If received as nominal delay rental or nominal annual rent on a lease, a receipt shall be allocated to income.(2) If received from a production payment, a receipt shall be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance shall be allocated to principal.(3) If an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, ninety percent (90%) shall be allocated to principal and the balance to income.(4) If an amount is received from a working interest or any other interest not provided for in subdivision (1), (2), or (3) of this subsection, ninety percent (90%) of the net amount received shall be allocated to principal and the balance to income.(b) An amount received on account of an interest in water that is renewable shall be allocated to income. If the water is not renewable, ninety percent (90%) of the amount shall be allocated to principal and the balance to income.(c) This Chapter applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.(d) If a trust owns an interest in minerals, water, or other natural resources on January 1, 2004, the trustee may allocate receipts from the interest as provided in this Chapter or in the manner used by the trustee before January 1, 2004. If the trust acquires an interest in minerals, water, or other natural resources after January 1, 2004, the trustee shall allocate receipts from the interest as provided in this Chapter. (2003-232, s. 2.)