reglab/housing_qa huggingface dataset:
IN Code § 30-2-14-20 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-20. Income Interest; Asset Subject to Trust

Sec. 20. (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 following dates:(1) On the date the asset 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 the asset is distributed to the trust from the decedent's estate, if the income received during the administration of the estate was accounted for and distributed by the estate as part of the corpus of the estate in accordance with IC 29-1-17-7.(3) On the date of the decedent's death if, under the terms of the decedent's will or other applicable law, income received during administration of the decedent's estate was accounted for and distributed by the estate as income, and not as part of the corpus of the estate.(4) On the date of an individual's death, in the case of an asset that is not part of the probate estate (as defined in IC 29-1-1-3) and that is transferred to a trust or becomes a part of a trust 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), 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.(e) This section applies only for purposes of determining the period in which an income beneficiary is entitled or eligible to receive any net income of a trust. This section does not control how receipts and disbursements are allocated to or between principal and income during that period. Amounts received by a trust from a decedent's estate or another trust as a distribution of principal may be allocable to principal under section 24 of this chapter even to the extent the amounts received include income of the distributing estate or trust received or accrued after the beneficiary's income interest begins.As added by P.L.84-2002, SEC.2. Amended by P.L.51-2014, SEC.15.
IN Code § 30-2-14-21 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-21. Income Receipts and Disbursements

Sec. 21. (a) A trustee shall allocate an income receipt or disbursement other than one to which section 18(a)(1) of this chapter applies to principal if its due date occurs before:(1) an individual dies in the case of an estate; or(2) 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 an individual 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 an individual 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 chapter. Distributions to shareholders or other owners from an entity to which section 23 of this chapter applies are considered to be due on:(1) the date fixed by the entity for determining who is entitled to receive the distribution; or(2) if no date is fixed, 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.(d) This section applies only for purposes of determining which income receipts and disbursements of a trust are to be taken into account in determining the net income of the trust for the period after the beginning and before the end of a beneficiary's income interest. Although this section provides for certain income receipts and disbursements to be allocated to principal, this section does not control the initial classification of receipts and disbursements as between principal and income. Amounts received by a trust from a decedent's estate or another trust as a distribution of principal may be allocable to principal under section 24 of this chapter, even to the extent the amounts received include income receipts of the distributing estate or trust received or accrued after the beneficiary's income interest begins.As added by P.L.84-2002, SEC.2. Amended by P.L.51-2014, SEC.16.
IN Code § 30-2-14-22 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-22. Termination of Mandatory Income Interest

Sec. 22. (a) As used 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 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 must 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.As added by P.L.84-2002, SEC.2.
IN Code § 30-2-14-23 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-23. Receipts From an Entity

Sec. 23. (a) As used 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. The term does not include the following:(1) A trust or an estate to which section 24 of this chapter applies.(2) A business or an activity to which section 25 of this chapter applies.(3) An asset backed security to which section 37 of this chapter 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 (1) 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.(4) Money received from an entity that is:(A) a regulated investment company; or(B) 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 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:(1) the entity's board of directors; or(2) a 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.As added by P.L.84-2002, SEC.2.
IN Code § 30-2-14-24 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-24. Distributions of Principal and Income From Trust or Estate

Sec. 24. A trustee shall allocate to:(1) income an amount received as a distribution of income; and(2) principal an amount received as a distribution of principal;from a trust or an estate in which the trust has an interest other than a purchased interest. 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 23 or 37 of this chapter applies to a receipt from the trust.As added by P.L.84-2002, SEC.2.
IN Code § 30-2-14-25 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-25. Separate Accounting Records for Business or Activity

Sec. 25. (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:(1) its net cash receipts must be retained for:(A) working capital;(B) the acquisition or replacement of fixed assets; and(C) other reasonably foreseeable needs of the business or activity; and(2) 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 section 36 of this chapter applies.As added by P.L.84-2002, SEC.2.
IN Code § 30-2-14-26 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-26. Receipts and Property Allocated to Principal

Sec. 26. A trustee shall allocate to principal:(1) to the extent not allocated to income under this chapter, assets received from:(A) a transferor during the transferor's lifetime;(B) a decedent's estate;(C) a trust with a terminating income interest; or(D) 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 sections 23 through 37 of this chapter;(3) amounts recovered from third parties to reimburse the trust because of disbursements described in section 39(a)(7) of this chapter 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 30 through 37 of this chapter.As added by P.L.84-2002, SEC.2.
IN Code § 30-2-14-27 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-27. Rental Property Receipts

Sec. 27. 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, 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.As added by P.L.84-2002, SEC.2.
IN Code § 30-2-14-28 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-28. Obligation to Pay Money to Trustee

Sec. 28. (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 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 (1) year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within one (1) year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income.(c) Notwithstanding any other provision of this section, when an obligation described in this section is held as an asset of a charitable remainder trust, an increase in the value of the obligation over the value of the obligation at the time of acquisition by the trust is distributable as income. For purposes of this subsection, the increase in value is available for distribution only when the trustee receives cash on account of the obligation. If the obligation is surrendered or liquidated partially, the cash available shall be attributed first to the increase. The increase is distributable to the income beneficiary who is the income beneficiary at the time the cash is received.(d) This section does not apply to an obligation to which section 31, 32, 33, 34, 36, or 37 of this chapter applies.As added by P.L.84-2002, SEC.2.
IN Code § 30-2-14-29 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-29. Life Insurance Policy Proceeds; Proceeds of Other Contracts

Sec. 29. (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 25 of this chapter, loss of profits from a business.(c) This section does not apply to a contract to which section 31 of this chapter applies.As added by P.L.84-2002, SEC.2.
IN Code § 30-2-14-30 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-30. Insubstantial Allocation Between Principal and Income

Sec. 30. If a trustee determines that an allocation between principal and income required by section 31, 32, 33, 34, or 37 of this chapter is insubstantial, the trustee may allocate the entire amount to principal unless one (1) of the circumstances described in section 15(c) of this chapter applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in section 15(d) of this chapter and may be released for the reasons and in the manner described in section 15(e) of this chapter. 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.As added by P.L.84-2002, SEC.2.
IN Code § 30-2-14-32 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-32. Receipts From Liquidating Asset

Sec. 32. (a) As used in this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one (1) year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include the following:(1) A payment subject to section 31 of this chapter.(2) Resources subject to section 33 of this chapter.(3) Timber subject to section 34 of this chapter.(4) An activity subject to section 36 of this chapter.(5) An asset subject to section 37 of this chapter.(6) Any asset for which the trustee establishes a reserve for depreciation under section 40 of this chapter.(b) A trustee shall allocate to income ten percent (10%) of the receipts from a liquidating asset and the balance to principal.As added by P.L.84-2002, SEC.2.
IN Code § 30-2-14-33 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-33. Receipts From an Interest in Minerals or Other Natural Resources

Sec. 33. (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 must be allocated to income.(2) If 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) 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%) must 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), ninety percent (90%) 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 (90%) of the amount must 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, 2003, the trustee may allocate receipts from the interest as provided in this chapter or in the manner used by the trustee before January 1, 2003. If the trust acquires an interest in minerals, water, or other natural resources after December 31, 2002, the trustee shall allocate receipts from the interest as provided in this chapter.As added by P.L.84-2002, SEC.2.
IN Code § 30-2-14-34 (2021)
2021 Indiana Code|Title 30. Trusts and Fiduciaries|Article 2. General Provisions|Chapter 14. Uniform Principal and Income Act|30-2-14-34. Net Receipts From the Sale of Timber and Related Products

Sec. 34. (a) To the extent that a trustee accounts for receipts from the sale of timber and related products under this section, the trustee shall allocate the net receipts:(1) to income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;(2) to principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;(3) to or between income and principal if the net receipts are from:(A) the lease of timberland; or(B) a contract to cut timber from land owned by a trust;by determining the amount of timber removed from the land under the lease or contract and applying the rules in subdivisions (1) and (2); or(4) to principal to the extent that advance payments, bonuses, and other payments are not allocated under subdivision (1), (2), or (3).(b) In determining net receipts to be allocated under subsection (a), a trustee shall deduct and transfer to principal a reasonable amount for depletion.(c) This chapter applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.(d) If a trust owns an interest in timberland, the trustee may allocate net receipts from the sale of timber and related products as provided in this chapter or in the manner used by the trustee before January 1, 2003. If the trust acquires an interest in timberland after December 31, 2002, the trustee shall allocate net receipts from the sale of timber and related products as provided in this chapter.As added by P.L.84-2002, SEC.2.