reglab/housing_qa huggingface dataset:
SC Code § 62-7-904P (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-904P. Trustee considerations for unitrust amount paid.

 Unless the terms of the express total return unitrust governing instrument specifically provide otherwise, the trustee:  (A) shall consider the unitrust amount as paid from net accounting income determined as if the trust were not a unitrust;  (B) shall then consider the unitrust amount as paid from ordinary income not allocable to net accounting income;  (C) 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  (D) shall then consider the unitrust amount as coming from the principal of the trust.  HISTORY: 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-906 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-906. Determination and distribution of net income.

 (A) Each beneficiary described in Section 62-7-905(4) is entitled to receive a portion of the net income equal to his 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:  (1) beneficiary is entitled to receive a portion of the net income equal to his fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold to meet principal obligations;  (2) fractional interest of the beneficiary 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;  (3) fractional interest of the beneficiary 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; and  (4) 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 trustee may apply the provisions of this section, to the extent that the trustee 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: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-907 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-907. Beginning and end of income interests.

 (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 on the date:  (1) it is transferred to the trust, in the case of an asset that is transferred to a trust during the transferor's life;  (2) the testator dies, 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 estate; or  (3) the individual dies, in the case of an asset that is transferred to a fiduciary by a third party because of the death of the individual.  (C) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined pursuant to 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 trustee may distribute income.  HISTORY: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-908 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-908. Allocation of income receipts and disbursements.

 (A) A trustee shall allocate an income receipt or disbursement, other than one subject to Section 62-7-905(1), 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 must 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 must be allocated to principal and the balance must 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 part. Distributions to shareholders or other owners from an entity subject to Section 62-7-910 are considered 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: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-909 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-909. Undistributed income.

 (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 must be added to principal under the terms of the trust.  (B) When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a 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 of the trust immediately before the income interest ends. In that case, the undistributed income from the portion of the trust that may be revoked must be added to principal.  (C) When the obligation of a trustee to pay a fixed annuity or a fixed fraction of the value of the trust 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: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-910 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-910. Allocation of receipts from an entity to principal or income.

 (A) 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 subject to Section 62-7-911, a business or activity to which Section 62-7-912 applies, or an asset-backed security to which Section 62-7-924 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 of the entity's gross assets of the entity, as shown by the year-end financial statements immediately preceding the initial receipt.  (E) Money is not received in partial liquidation, nor may it be taken into account pursuant to subsection (D)(2), 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.  (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 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: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-911 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-911. Allocations of income and principal received from a trust or an 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 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 62-7-910 or 62-7-924 applies to a receipt from the trust.  HISTORY: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-912 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-912. Separate accounting for a business activity.

 (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 general accounting records of the trust, 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 must 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 general accounting records of the trust 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 subject to Section 62-7-923.  HISTORY: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-913 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-913. Allocations to principal.

 A trustee shall allocate to principal:  (1) to the extent not allocated to income pursuant to this part, assets received from a transferor during his 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;  (3) amounts recovered from third parties to reimburse the trust because of disbursements described in Section 62-7-926(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 must distribute income; and  (6) other receipts as provided in Sections 62-7-917 through 62-7-924.  HISTORY: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-914 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-914. Accounting for receipts from rental property.

 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 applied as rent for future periods, must 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: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-915 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-915. Allocation of interest as income and proceeds from disposition of an obligation as principal; exceptions.

 (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, must be allocated to income without 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 must be allocated to income.  (C) This section does not apply to an obligation subject to Section 62-7-918, 62-7-919, 62-7-920, 62-7-921, or 62-7-924.  HISTORY: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-916 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-916. Allocation of proceeds of insurance contracts; exception.

 (A) Except as otherwise provided in subsection (B), 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 Section 62-7-912, loss of profits from a business.  (C) This section does not apply to a contract subject to Section 62-7-918.  HISTORY: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-917 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-917. Insubstantial allocations.

 If a trustee determines that an allocation between principal and income required by Section 62-7-918, 62-7-919, 62-7-920, 62-7-921, or 62-7-924 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances provided in Section 62-7-904(C) applies to the allocation. This power may be exercised by a cotrustee in the circumstances provided in Section 62-7-904(D) and may be released for the reasons and in the manner provided in Section 62-7-904(E). An allocation is presumed to be insubstantial if:  (1) the amount of the allocation increases or decreases net income in an accounting period, as determined before the allocation, by less than ten percent; or  (2) the value of the asset producing the receipt for which the allocation is made is less than ten percent of the total value of the assets of the trust at the beginning of the accounting period.  HISTORY: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-919 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-919. Liquidating assets.

 (A) In this section, "liquidating asset" means an asset whose value diminishes or terminates 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 Section 62-7-918, resources subject to Section 62-7-920, timber subject to Section 62-7-921, an activity subject to Section 62-7-923, an asset subject to Section 62-7-924, or any asset for which the trustee establishes a reserve for depreciation pursuant to Section 62-7-927.  (B) A trustee shall allocate to income ten percent of the receipts from a liquidating asset and the balance to principal.  HISTORY: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.
SC Code § 62-7-920 (2021)
2021 South Carolina Code of Laws|Title 62 - South Carolina Probate Code|Article 7 - South Carolina Trust Code|Section 62-7-920. Allocation of receipts from interests in minerals or other natural resources.

 (A) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them if:  (1) received as nominal delay rental or nominal annual rent on a lease, a receipt must be allocated to income;  (2) received from a production payment, a receipt must 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 must be allocated to principal;  (3) an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, ninety percent must be allocated to principal and the balance to income;  (4) an amount is received from a working interest or any other interest not otherwise provided for in this subsection, ninety percent of the net amount received must be allocated to principal and the balance to income.  (B) An amount received on account of an interest in water that is renewable must be allocated to income. If the water is not renewable, ninety percent of the amount must be allocated to principal and the balance to income.  (C) This part 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 the effective date of this part, the trustee may allocate receipts from the interest as provided in this part or in the manner used by the trustee before the effective date of this part. If the trust acquires an interest in minerals, water, or other natural resources after the effective date of this part, the trustee shall allocate receipts from the interest as provided in this part.  HISTORY: 2005 Act No. 66, Section 1; 2013 Act No. 100, Section 2, eff January 1, 2014.