reglab/housing_qa huggingface dataset:
AL Code § 19-3A-412 (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-412 - Timber.

Section 19-3A-412Timber. (a) To the extent that a fiduciary accounts for receipts from the sale of timber and related products pursuant to this section, the fiduciary shall allocate the net receipts first to principal, based upon the volume of the timber at the time of transfer to the trust or decedent's estate. The balance shall be allocated eighty percent (80%) to income and the balance to principal. (b) In determining net receipts as provided for in subsection (a), a fiduciary shall deduct the following expenses related to the sale of timber and related products from gross receipts: (1) Management expenses; (2) Legal and accounting expenses and fees; (3) Sales commissions; (4) Reforestation expenses; and (5) Any necessary timber stand improvement expense that is recognized and accepted as good forest management practice at the time of sale. (c) This chapter applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust or decedent's estate. (d) If a trust owns an interest in timberland on January 1, 2001, then the fiduciary shall allocate net receipts from the sale of timber and related products as provided in this chapter or in the manner used by the fiduciary before January 1, 2001. If the trust acquires an interest in timberland after January 1, 2001, then the fiduciary shall allocate net receipts from the sale of timber and related products as provided in this section. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-413 (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-413 - Property Not Productive of Income.

Section 19-3A-413Property not productive of income. (a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the fiduciary transfers from principal to income pursuant to Section 19-3A-104, if applicable, and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, then the spouse may require the fiduciary (1) to make property productive of income, (2) to convert property within a reasonable time or (3) to exercise the power conferred by Section 19-3A-104(a), if applicable. The fiduciary may decide which action or combination of actions to take. (b) In cases not governed by subsection (a), a fiduciary shall allocate to principal the proceeds from the sale or other disposition of an asset without regard to the amount of income the asset produces during any accounting period. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-415 (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-415 - Asset-Backed Securities.

Section 19-3A-415Asset-backed securities. (a) In this section, "asset-backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive from the collateral financial assets (1) only the interest or other current return thereon or (2) only the proceeds other than interest or current return. The term does not include an asset to which Section 19-3A-401 or Section 19-3A-409 applies. (b) If a trust receives a payment that includes interest or other current return and other proceeds of the collateral financial assets, then the fiduciary (1) shall allocate to income the portion of the payment which the payer identifies as being from interest or other current return; and (2) shall allocate the balance of the payment to principal. (c) If a trust receives one or more payments in exchange for the trust's entire interest in an asset-backed security within a 12-month period, then the fiduciary shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust's interest in the security within a period exceeding 12 months, then the fiduciary shall allocate ten percent (10%) of the payment to income and the balance to principal. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-414 (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-414 - Derivative Instruments and Options.

Section 19-3A-414Derivative instruments and options. (a) In this section, "derivative instrument" means a contract, a financial instrument, or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets. (b) To the extent that a fiduciary does not account under Section 19-3A-403 for transactions in derivative instruments, the fiduciary shall allocate to principal receipts from and disbursements made in connection with those transactions. (c) If a fiduciary grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the fiduciary or other owner of the asset is required to deliver the asset if the option is exercised, then an amount received for granting the option shall be allocated to principal. An amount paid to acquire the option shall be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, shall be allocated to principal. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-501 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 5 - Allocation of Disbursements During Administration of Trust or Decendent's Estate.|Section 19-3A-501 - Disbursements From Income.

Section 19-3A-501Disbursements from income. A trustee shall make the following disbursements from income to the extent that they are not disbursements to which Section 19-3A-201(c)(2) or Section 19-3A-201(c)(3) applies: (a) All of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee, to the extent not charged to principal pursuant to Section 19-3A-502(a)(1); (b) All expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests, to the extent not charged to principal pursuant to Section 19-3A-502(a)(1); (c) All of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest; (d) All recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset; and (e) All disbursements related to environmental matters, to the extent not charged to principal pursuant to Section 19-3A-502(c). (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-502 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 5 - Allocation of Disbursements During Administration of Trust or Decendent's Estate.|Section 19-3A-502 - Disbursements From Principal.

Section 19-3A-502Disbursements from principal. (a) A trustee shall make the following disbursements from principal: (1) An amount, not to exceed fifty percent (50%), of the disbursements described in Section 19-3A-501(a) and Section 19-3A-501(b); (2) All of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale; (3) Payments on the principal of a trust debt; (4) Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property; (5) Premiums paid on a policy of insurance not described in Section 19-3A-501(d), of which the trust is the owner and beneficiary; and (6) Estate, inheritance, and other transfer taxes, including penalties thereon, apportioned to the trust which carries the name of the estate. (b) If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, then the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation. (c) A trustee may charge all disbursements related to environmental matters to principal or income, as provided by applicable law. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-503 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 5 - Allocation of Disbursements During Administration of Trust or Decendent's Estate.|Section 19-3A-503 - Transfers From Income to Principal for Depreciation.

Section 19-3A-503Transfers from income to principal for depreciation. (a) In this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year. (b) A fiduciary may transfer from income to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation in any of the following circumstances: (1) As to the portion of a. real property used or available for use by a beneficiary as a residence or b. tangible personal property held or made available for the personal use or enjoyment of a beneficiary; (2) During the administration of a decedent's estate; or  (3) If the fiduciary is accounting separately for the business or activity in which the asset is used, pursuant to Section 19-3A-403. (c) An amount transferred from income to principal need not be held as a separate fund. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-504 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 5 - Allocation of Disbursements During Administration of Trust or Decendent's Estate.|Section 19-3A-504 - Transfers From Income to Reimburse Principal.

Section 19-3A-504Transfers from income to reimburse principal. (a) If a fiduciary makes or expects to make a principal disbursement described in this section, then the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements. (b) Principal disbursements to which subsection (a) applies include the following, but only to the extent that the fiduciary has not been and does not expect to be reimbursed by a third party: (1) An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs; (2) A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments; (3) Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions; and (4) Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments. (c) If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, then a fiduciary may continue to transfer amounts from income to principal as provided in subsection (a). (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-505 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 5 - Allocation of Disbursements During Administration of Trust or Decendent's Estate.|Section 19-3A-505 - Income Taxes.

Section 19-3A-505Income taxes. (a) A tax required to be paid by a fiduciary based on receipts allocated to income shall be paid from income. (b) A tax required to be paid by a fiduciary based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing authority. (c) A tax required to be paid by a fiduciary on the trust's share of an entity's taxable income shall be paid as follows: (1) From income to the extent that receipts from the entity are allocated only to income; (2) From principal to the extent that receipts from the entity are allocated only to principal; (3) Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and (4) From principal to the extent that the tax exceeds the total receipts from the entity. (d) After applying subsections (a) through (c), the fiduciary shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary. (Act 2000-675, p. 1343, §1; Act 2012-550, p. 1624, §1.)
AL Code § 19-3A-506 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 5 - Allocation of Disbursements During Administration of Trust or Decendent's Estate.|Section 19-3A-506 - Adjustments Between Principal and Income Because of Taxes.

Section 19-3A-506Adjustments between principal and income because of taxes. (a) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from any of the following: (1) Elections and decisions, other than those described in subsection (b), that the fiduciary makes from time to time regarding tax matters; (2) An income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving a decedent's estate, a trust, or a distribution from a decedent's estate or a trust; or (3) The ownership by a decedent's estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the decedent's estate, trust, or a beneficiary. (b) If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by a decedent's estate, trust, or beneficiary are decreased, then each decedent's estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement shall equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each decedent's estate, trust, or beneficiary whose income taxes are reduced shall be the same as its proportionate share of the total decrease in income tax. A decedent's estate or a trust shall reimburse principal from income. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-601 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 6 - Miscellaneous Provisions.|Section 19-3A-601 - Uniformity of Application and Construction.

Section 19-3A-601Uniformity of application and construction.  In applying and construing this uniform act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-602 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 6 - Miscellaneous Provisions.|Section 19-3A-602 - Severability Clause.

Section 19-3A-602Severability clause. If any provision of this chapter or its application to any person or circumstance is held invalid, then the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-603 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 6 - Miscellaneous Provisions.|Section 19-3A-603 - Effective Date.

Section 19-3A-603Effective date. This chapter shall become effective on January 1, 2001, and shall apply to every trust and decedent's estate created on or after such date. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-604 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 6 - Miscellaneous Provisions.|Section 19-3A-604 - Application to Existing Trusts and Estates.

Section 19-3A-604Application to existing trusts and estates.  This chapter shall become applicable on January 1, 2001, to every trust and decedent's estate already in existence on January 1, 2001, and to every testamentary trust to be created on or after January 1, 2001, from a decedent's estate that is already in existence on January 1, 2001; provided, however, at any time prior to January 1, 2003, any such pre-existing trust or decedent's estate (or testamentary trust to be created from a pre-existing estate) shall have the right to elect to continue operating under the law in effect prior to this chapter. Any fiduciary, income beneficiary, or presumptive remainder beneficiary of an affected trust or estate shall have the right to make the election to continue operating under the law in effect prior to this chapter, which election shall be made by a written instrument delivered to, or executed by, the fiduciary and placed with the fiduciary's records. The decision of whether to make such election by the fiduciary or by any income beneficiary or presumptive remaindermen shall conclusively bind all persons who may have any interest in the affected trust, including all contingent remaindermen and potential appointees of the affected trust or estate. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-605 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 6 - Miscellaneous Provisions.|Section 19-3A-605 - Consent of Beneficiaries.

Section 19-3A-605Consent of beneficiaries. A fiduciary may at any time obtain the written consent of all of the current income beneficiaries and presumptive remainder beneficiaries of a trust or decedent's estate as to the fiduciary's exercise of any discretion granted under this chapter, including the application of the chapter to pre-existing trusts or decedent's estates, and such written consent shall conclusively bind all persons who may have any interest in the affected trust or decedent's estate, including all contingent remainder beneficiaries and potential appointees of the affected trust or decedent's estate. (Act 2000-675, p. 1343, §1.)
AL Code § 19-3A-606 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 6 - Miscellaneous Provisions.|Section 19-3A-606 - Applicability to Tenant and Remainder Interests.

Section 19-3A-606Applicability to tenant and remainder interests. This chapter shall govern the ascertainment of income and principal, and the apportionment of receipts and disbursements between tenant and remainderman, in all cases where a principal has been established with or, unless otherwise stated in this chapter, without the interposition of a trust; except that in the establishment of the principal, provision may be made touching all matters covered by this chapter, and the person establishing the principal may direct the manner of ascertainment of income and principal and the apportionment of receipts and disbursements or grant discretion to the trustee or other person to do so, and such provision and direction, where not otherwise contrary to law, shall control notwithstanding this chapter. This section is intended to be declarative of the law of Alabama from the time of enactment of the Alabama Principal and Income Act pursuant to this chapter. (Act 2006-216, p. 314, §4.)
AL Code § 19-3A-607 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 6 - Miscellaneous Provisions.|Section 19-3A-607 - Applicability of Section 19-3a-409.

Section 19-3A-607Applicability of Section 19-3A-409. Section 19-3A-409, as amended by Act 2012-550, applies to a trust described in Section 19-3A-409(d) on and after the following dates: (1) If the trust is not funded as of January 1, 2013, the date of the decedent's death. (2) If the trust is initially funded in the calendar year beginning January 1, 2013, the date of the decedent's death. (3) If the trust is not described in subdivision (1) or (2), January 1, 2013. (Act 2012-550, p. 1624, §2.)
AL Code § 19-3A-608 (2021)
2021 Code of Alabama|Title 19 - Fiduciaries and Trusts.|Chapter 3A - Alabama Principal and Income Act.|Article 6 - Miscellaneous Provisions.|Section 19-3A-608 - Application of Alabama Uniform Trust Code.

Section 19-3A-608Application of Alabama Uniform Trust Code.  The provisions of the Alabama Uniform Trust Code apply to the Alabama Principal and Income Act, except to the extent the provisions are inconsistent with the provisions of this chapter. (Act 2013-336, p. 1179, §2.)