reglab/housing_qa huggingface dataset:
AL Code § 19-3A-105 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 1 - Definitions and Fiduciary Duties.|Section 19-3A-105 - Express Unitrusts.

Section 19-3A-105Express unitrusts. Except to the extent otherwise provided in the governing instrument, the following provisions shall apply to a trust which by its governing instrument requires distribution of a unitrust amount (whether payable in a single sum or in installments), such trust to be referred to as an "express unitrust": (1) The income and net income of an express unitrust is the unitrust amount, but only if the unitrust amount is not less than three percent and not more than five percent of the net fair market value of the trust assets. If the unitrust amount is more than five percent of the net fair market value of the trust assets, the income and net income shall be five percent of the net fair market value of the trust assets, and the excess over five percent shall be considered to be principal of the trust. (2) Expenses which would be deducted from income if the trust were not an express unitrust shall not be deducted from the unitrust amount. (3) The trustee, from time to time, may determine the following: a. The frequency of payment of the unitrust amount during the year; b. Any adjustments to be made to the unitrust amount due to other payments from or contributions to the trust; c. The valuation dates to use; d. How nonliquid or hard to value assets shall be valued, how frequently to value them and whether to estimate their value; e. Whether to omit from the calculations the value of trust property occupied, used, or possessed by a beneficiary; and f. Any other matters necessary for the proper functioning of the unitrust that are not inconsistent with the governing instrument. (Act 2013-336, p. 1179, §2.)
AL Code § 19-3A-202 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 2 - Decedent's Estate or Terminating Income Interest.|Section 19-3A-202 - Distribution to Residuary and Remainder Beneficiaries.

Section 19-3A-202Distribution to residuary and remainder beneficiaries. (a) Each beneficiary described in Section 19-3A-201(d) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using inventory values as of the appropriate distribution dates. (b) In determining a beneficiary's share of net income, the following rules apply: (1) The beneficiary's fractional interest in the undistributed principal assets shall be calculated without regard to property specifically given to the beneficiary and property required to pay pecuniary amounts not in trust. (2) The beneficiary's fractional interest in the undistributed principal assets shall be calculated on the basis of the aggregate inventory value of those assets as of the distribution date without reducing the value by any unpaid principal obligation. (c) If a fiduciary does not distribute all of the collected but undistributed net income to each person as of a distribution date, then the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income. (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. (e) 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. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-301 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 3 - Apportionment at Beginning and End of Income Interest.|Section 19-3A-301 - When Right to Income Begins and Ends.

Section 19-3A-301When 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, then on the date an asset becomes subject to a trust or a successive income interest. (b) An asset becomes subject to a trust at the following times: (1) In the case of an asset that is transferred to a trust during the transferor's life, on the date such asset is transferred to the trust; (2) In the case of an asset that becomes subject to a trust by reason of a will, on the date of a testator's death, even if there is an intervening period of administration of the testator's estate; or  (3) In the case of an asset that is transferred to a fiduciary by a third party because of the individual's death, on the date of an 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), 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 fiduciary may distribute income. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-302 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 3 - Apportionment at Beginning and End of Income Interest.|Section 19-3A-302 - Apportionment of Receipts and Disbursements Upon Decedent's Death or When Income Interest Begins.

Section 19-3A-302Apportionment of receipts and disbursements upon decedent's death or when income interest begins. (a) A fiduciary shall allocate an income receipt or disbursement, other than one to which Section 19-3A-201(a) applies, to principal in the following instances: (1) In the case of a decedent's estate, if its due date occurs before the date of a decedent's death; or (2) In the case of a trust or successive income interest, if its due date occurs before an income interest begins. (b) A fiduciary 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 if 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, then there is no due date for the purposes of this chapter. Distributions to shareholders or other owners from an entity to which Section 19-3A-401 applies are deemed 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 (1) for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or (2) for distributions customarily made by an entity at regular intervals. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-303 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 3 - Apportionment at Beginning and End of Income Interest.|Section 19-3A-303 - Apportionment When Income Interest Ends.

Section 19-3A-303Apportionment when income interest ends.  (a) For the purposes of 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) Except as provided in subsection (c), on the date when a mandatory income interest ends, the fiduciary 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 mandatory income beneficiary's share of the undistributed income that is not disposed of under the terms of the trust. (c) If, immediately before the income interest ends, the mandatory income beneficiary has an unqualified power to revoke more than five percent of the trust, then the undistributed income from the portion of the trust that may be revoked shall be added to principal. (d) When a fiduciary's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the fiduciary shall prorate the final payment. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-401 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 4 - Allocation of Receipts During Administration.|Section 19-3A-401 - Character of Receipts.

Section 19-3A-401Character of receipts. (a) For purposes of 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 fiduciary has an interest other than (1) a trust or decedent's estate to which Section 19-3A-402 applies, (2) a business or activity to which Section 19-3A-403 applies, or (3) an asset-backed security to which Section 19-3A-415 applies. (b) Except as otherwise provided in this section, a fiduciary shall allocate to income money received from an entity. (c) A fiduciary shall allocate the following receipts from an entity to principal: (1) Property other than money except in cases when the fiduciary has the choice to receive dividends or similar payments either in cash or in the shares or similar ownership interests of the corporation or other business entity, in which case, the fiduciary shall allocate the receipts to income; (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) For purposes of subsection (c)(3), money is received in partial liquidation to the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation. (e) A fiduciary 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. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-402 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 4 - Allocation of Receipts During Administration.|Section 19-3A-402 - Distributions From Trust or Decedent's Estate.

Section 19-3A-402Distributions from trust or decedent's estate.  A fiduciary shall allocate to income an amount received as a distribution of income from a trust or a decedent's 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 decedent's estate. If a fiduciary 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 fiduciary, then Section 19-3A-401 or Section 19-3A-415 applies to a receipt from such a trust. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-403 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 4 - Allocation of Receipts During Administration.|Section 19-3A-403 - Business and Other Activities Conducted by Fiduciary.

Section 19-3A-403Business and other activities conducted by fiduciary. (a) If a fiduciary 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 other activity instead of accounting for it as part of the trust's general accounting records, then the fiduciary may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets. (b) A fiduciary who accounts separately for a business or other activity may determine the extent to which net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets and the other reasonably foreseeable needs of the business or other 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 fiduciary sells assets of the business or other activity, other than in the ordinary course of the business or activity, then the fiduciary shall account for the net amount received as principal in the trust's general accounting records to the extent the fiduciary determines that the amount received is no longer required in the conduct of the business or other activity. (c) Businesses and other activities for which a fiduciary 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) Managing rental properties; (5) Extracting minerals and other natural resources; (6) Timber operations; and (7) Activities to which Section 19-3A-414 applies. (Act 2000-675, p. 1343, §1)
AL Code § 19-3A-404 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 4 - Allocation of Receipts During Administration.|Section 19-3A-404 - Principal Receipts.

Section 19-3A-404Principal receipts. A fiduciary 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 fiduciary as beneficiary; (2) Subject to any contrary rules in Section 19-3A-401 through Section 19-3A-415, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit; (3) Amounts recovered from third parties to reimburse the trust because of disbursements described in Section 19-3A-502(c) or for other reasons 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 fiduciary may or must distribute income; and (6) Other receipts as provided in Section 19-3A-408 through Section 19-3A-415. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-405 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 4 - Allocation of Receipts During Administration.|Section 19-3A-405 - Rental Property.

Section 19-3A-405Rental property. To the extent the fiduciary does not account for receipts from rental property pursuant to Section 19-3A-403, the fiduciary 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 fiduciary's contractual obligations have been satisfied with respect to that amount. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-406 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 4 - Allocation of Receipts During Administration.|Section 19-3A-406 - Bonds and Other Obligations.

Section 19-3A-406Bonds and other obligations. (a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on a bond or an obligation to pay money to the fiduciary shall be allocated to income. (b) Except as provided for in subsection (c) and subsection (d), a fiduciary shall allocate to principal any gain or loss realized upon the sale or maturity of any bond or obligation to pay money to the fiduciary, regardless of how such bond or other obligation was acquired. (c) A fiduciary shall allocate to income the difference between inventory value or cost, and the amount realized upon sale or maturity, if greater, for bonds or other obligations that do not bear interest, regardless of how or when such bond or other obligation was acquired. (d) For bonds or other obligations that are acquired by a fiduciary subsequent to the time the principal was established and whose cost is greater than their par or maturity value, the fiduciary shall amortize periodically out of income the premium paid, and upon sale or maturity, shall allocate to principal any gain or loss realized thereon. (e) This section does not apply to a bond or other obligation to which Section 19-3A-409, Section 19-3A-410, Section 19-3A-411, Section 19-3A-412, Section 19-3A-414, or Section 19-3A-415 applies. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-407 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 4 - Allocation of Receipts During Administration.|Section 19-3A-407 - Insurance Policies and Similar Contracts.

Section 19-3A-407Insurance policies and similar contracts.  (a) Except as otherwise provided in subsection (b), a fiduciary shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its fiduciary is named as beneficiary, including a contract that insures the trust or its fiduciary against loss for damage to, destruction of, or loss of title to a trust asset. The fiduciary 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 fiduciary shall allocate to income proceeds of a contract that insures the fiduciary against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to Section 19-3A-403, loss of profits from a business. (c) This section does not apply to a contract to which Section 19-3A-409 applies. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-408 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 4 - Allocation of Receipts During Administration.|Section 19-3A-408 - Insubstantial Allocations Not Required.

Section 19-3A-408Insubstantial allocations not required.  (a) If a fiduciary determines that an allocation between principal and income required by Section 19-3A-409, Section 19-3A-410, Section 19-3A-411, Section 19-3A-412, or Section 19-3A-415 is insubstantial, then the fiduciary may allocate the entire amount to principal, unless one of the circumstances described in Section 19-3A-104(c) applies to the allocation. This power may be exercised by a co-trustee in the circumstances described in Section 19-3A-104(d) and may be released for the reasons and in the manner described in Section 19-3A-104(e). For purposes of this subsection, the circumstances set forth in Section 19-3A-104(c), Section 19-3A-104(d), and Section 19-3A-104(e) shall be applied whether or not Section 19-3A-104 is otherwise applicable to the trust. (b) Nothing in this section imposes a duty on the fiduciary to make an allocation pursuant to this section, and the fiduciary is not liable for failure to make an allocation pursuant to this section. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-410 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 4 - Allocation of Receipts During Administration.|Section 19-3A-410 - Liquidating Assets.

Section 19-3A-410Liquidating assets.  (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 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 Section 19-3A-409, natural resources subject to Section 19-3A-411, timber subject to Section 19-3A-412, an activity subject to Section 19-3A-414, an asset subject to Section 19-3A-415, or any asset for which the fiduciary establishes a reserve for depreciation under Section 19-3A-503. (b) A fiduciary shall allocate to income ten percent (10%) of the receipts from a liquidating asset and the balance to principal. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-411 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 4 - Allocation of Receipts During Administration.|Section 19-3A-411 - Minerals, Water, and Other Natural Resources.

Section 19-3A-411Minerals, water, and other natural resources. (a) To the extent that a fiduciary accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the fiduciary 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 payment, shut-in-well payment, take-or-pay payment, bonus, or a delay rental that is more than nominal, then 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 subdivisions (1), (2), or (3), then 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, then 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, 2001, then the fiduciary may allocate receipts from the interest as provided in this chapter or in the manner used by the fiduciary before January 1, 2001. If the trust acquires an interest in minerals, water, or other natural resources after January 1, 2001, then the fiduciary shall allocate receipts from the interest as provided in this chapter. (Act 2000-675, p. 1343, §1.)