reglab/statecodes huggingface dataset:
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 13. Payment of Funeral, Burial Services, or Merchandise in Advance of Need › 30-2-13-29. Fund Uses; Complaints; Annual Review

Sec. 29. (a) Money in the fund may be used to provide restitution to a seller who performs a defaulted contract, to a purchaser, or to a purchaser's estate for pecuniary loss arising from a trust or an escrow required by:
(1) this chapter;
(2) IC 23-14-49-1;
(3) IC 30-2-9; or
(4) IC 30-2-10.
The repeal of a statute cited in this subsection does not terminate the ability of a party to a contract made under the repealed statute to receive restitution under this chapter.
(b) The purchaser, seller, or other interested person must request restitution by filing a verified complaint with the board.
(c) The board may investigate any verified complaint. Within one hundred eighty (180) days after a verified complaint is filed, the board shall determine if a seller has defaulted on a contract. If the seller's obligation to perform under the contract cannot be collected from the seller, the board may order the auditor of state to make restitution from the fund.
(d) The amount of restitution may not exceed the gross amount of the original contract plus interest, compounded annually, on the gross amount that is figured, for each year or part of a year for which restitution is owed, using the lesser of:
(1) the rate set forth in IC 24-4.6-1-101 in effect on January 1 of each year; or
(2) the monthly average yield on United States Treasury Securities for the month of January of each year, adjusted to a constant maturity of one (1) year, as published by the Federal Reserve.
(e) The fund may not be charged with court costs or the payment of legal or other fees. In computing the amount of restitution, the board shall give credit for:
(1) merchandise delivered; and
(2) resources still existing in trust.
(f) When restitution is paid from the fund, the fund is subrogated to the amount of the restitution, and the board shall ask the attorney general to take all reasonable steps to collect the subrogated amount from the seller. Any amount collected shall be deposited in the fund.
(g) Money in the fund may only be used for a purpose that is specified in this section.
(h) The payment of restitution from the fund is not a right, and a purchaser does not have a vested right in the fund as a beneficiary of the fund.
(i) The status of the fund shall be annually reviewed by the board. If the board determines during its annual review that the fund balance equals or exceeds two million five hundred thousand dollars ($2,500,000), the board shall suspend payments to the fund until after the next annual review that the board determines that the fund balance is less than two million five hundred thousand dollars ($2,500,000).
As added by P.L.200-1991, SEC.1. Amended by P.L.120-1994, SEC.5; P.L.52-1997, SEC.54; P.L.114-1999, SEC.17; P.L.65-2007, SEC.5; P.L.112-2014, SEC.38.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 13. Payment of Funeral, Burial Services, or Merchandise in Advance of Need › 30-2-13-30. Seller Records and Books

Sec. 30. (a) The seller shall maintain accurate records, books, and accounts for each contract sold under this chapter containing the following:
(1) Copies of all contracts.
(2) The dates of all contracts.
(3) The amounts paid and received under each contract.
(4) The complete name, address, and identification of all parties to each contract.
(b) The seller shall maintain at the seller's principal Indiana business address complete records of all transactions under this chapter that involve the seller. The records may be audited and examined by the board at any reasonable time.
(c) The seller shall maintain all records required by this section for the longer of:
(1) ten (10) years; or
(2) three (3) years after the date of full performance of a contract.
The records are business records and customer lists within the meaning of IC 24-2-3.
(d) The requirements of this section apply to a seller, a successor seller, and a seller who was previously designated to provide services or merchandise to a purchaser.
As added by P.L.200-1991, SEC.1. Amended by P.L.61-2008, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 13. Payment of Funeral, Burial Services, or Merchandise in Advance of Need › 30-2-13-31. Annual Report

Sec. 31. (a) A seller who is required to register under this article, a cemetery under IC 25-15-9-17, a funeral home under IC 25-15, and a perpetual care fund under IC 23-14-48 shall file an annual report with the board that provides the following information:
(1) The name and location of each seller, cemetery, funeral home, and perpetual care fund.
(2) The name and business address of the owner and the names and business addresses of the resident agent and chief officer if the owner is not a natural person.
(3) If a cemetery, the amount of funds received by the owner during the previous fiscal year that are subject to trust requirements set forth in IC 23-14-48 and the amount required to be placed in trust, the amount of funds actually placed in trust to satisfy the requirements of IC 23-14-48, the name and address of the trustee, and if the funds are not held in trust by a corporate trustee, the name of the corporate surety and the amount of the trustee's fidelity bond as required by IC 23-14-51-4.
(4) The amount of money or identity of other property received subject to the trust or escrow requirements of this chapter, the amount required to be placed in trust or escrow, the amount actually placed in trust or escrow, and the name and address of the trustee.
(5) For a holder of a certificate of authority under section 33 of this chapter, the information that is listed in section 33(b)(2) through 33(b)(4) of this chapter.
(b) The annual report required by this section must meet the following requirements:
(1) Be made on a form prescribed and furnished by the board.
(2) Be signed by the owner if an individual or by the president or vice president and the treasurer or secretary if the owner is not an individual.
(3) Be notarized and affirmed under penalties of perjury by the individuals signing the annual report.
(4) Be filed in the office of the board by the seller not later than ninety (90) days after the end of the seller's fiscal year.
(5) Be accompanied by an annual fee of ten dollars ($10) if the seller is a funeral home or cemetery.
(6) Be accompanied by the fee required by section 27 of this chapter.
(c) Each geographic location of a seller is a separate and distinct business and requires a separate report.
(d) The board may suspend the certificate of authority of a seller who fails to file the seller's annual report within the period required under this section.
As added by P.L.200-1991, SEC.1. Amended by P.L.207-1993, SEC.32; P.L.241-1995, SEC.13; P.L.52-1997, SEC.55; P.L.195-1997, SEC.3; P.L.253-1997(ss), SEC.28.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 13. Payment of Funeral, Burial Services, or Merchandise in Advance of Need › 30-2-13-32. General Price List

Sec. 32. A seller of:
(1) prepaid services or merchandise; or
(2) at-need services or merchandise;
shall maintain for display or on request at the seller's place of business and in the possession of an agent appointed by the seller a fully detailed general price list of all prepaid and at-need services or merchandise offered by the seller. The seller shall make this list available to any individual requesting price information.
As added by P.L.200-1991, SEC.1. Amended by P.L.207-1993, SEC.33; P.L.241-1995, SEC.14.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 13. Payment of Funeral, Burial Services, or Merchandise in Advance of Need › 30-2-13-33. Certificates of Authority

Sec. 33. (a) A seller may not sell or provide prepaid services or merchandise or a contract designed to provide a funding mechanism to be used in conjunction with the purchase of prepaid services or merchandise under this chapter without first obtaining a certificate of authority from the board. However, an employee of a seller is exempt from subsections (b) and (c).
(b) A seller who seeks a certificate of authority must submit a statement to the board that includes the following:
(1) The seller's name and the address of the place of business.
(2) Information considered necessary by the board to show evidence of the seller's good moral character, reputation for fair dealing in business matters, and lack of a criminal record.
(3) The name, address, and Social Security number of each person authorized to directly represent the seller as an agent.
(4) A statement by the seller notarized and affirmed under the penalties for perjury that all payments required under section 27 of this chapter have been made.
(c) Upon issuance, the certificate of authority shall be posted conspicuously in the seller's place of business.
(d) A seller holding a certificate of authority or an agent of a seller who engages in door-to-door solicitation shall present a copy of the certificate of authority upon entry onto the premises of a prospective purchaser.
(e) A certificate of authority issued under this chapter expires annually on March 1.
(f) The board may renew a certificate of authority upon receipt of an application for renewal that includes the information listed in subsection (b).
As added by P.L.200-1991, SEC.1. Amended by P.L.207-1993, SEC.34; P.L.173-1996, SEC.16; P.L.195-1997, SEC.4; P.L.84-1998, SEC.27.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 13. Payment of Funeral, Burial Services, or Merchandise in Advance of Need › 30-2-13-34. Rules

Sec. 34. The board may adopt rules under IC 4-22-2 to implement this chapter.
As added by P.L.200-1991, SEC.1.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 13. Payment of Funeral, Burial Services, or Merchandise in Advance of Need › 30-2-13-35. Seller Misrepresentation

Sec. 35. It is a violation of this chapter for a seller to misrepresent the character, quality, durability, or suitability for a specific or an intended purpose of services or merchandise offered for sale to a purchaser.
As added by P.L.200-1991, SEC.1.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 13. Payment of Funeral, Burial Services, or Merchandise in Advance of Need › 30-2-13-36. Suspension of Certificates of Authority; Fines

Sec. 36. The board may suspend the certificate of authority of a seller who violates a provision of this chapter. The board may suspend the certificate of authority of a seller who intentionally violates section 12.5 of this chapter for at least one (1) year. The board may assess a seller a fine of not more than ten thousand dollars ($10,000) for each violation of section 12.5, 13, 15, 21, 23, 24, or 25 of this chapter to be added to the fund established under section 28 of this chapter.
As added by P.L.200-1991, SEC.1. Amended by P.L.114-1999, SEC.18.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 13. Payment of Funeral, Burial Services, or Merchandise in Advance of Need › 30-2-13-38. Uncured Deceptive Acts; Violations; Injunctive Relief; Private Right of Action

Sec. 38. (a) A seller who violates a provision of this chapter commits an uncured deceptive act (as defined in IC 24-5-0.5-2).
(b) A person doing business as a sole proprietor, a firm, a limited liability company, a corporation, an association, or a partnership, but not acting as a seller that:
(1) sells or advertises prepaid services or merchandise or services or merchandise (as defined in section 8 of this chapter) and fails to obtain the certificate of authority required by section 33 of this chapter; or
(2) sells or advertises prepaid services or merchandise or services or merchandise (as defined in section 8 of this chapter) after the entity's certificate of authority has:
(A) expired; or
(B) been rescinded, revoked, or suspended by the board;
commits a Class A misdemeanor. Each act committed in violation of this subsection constitutes a separate offense.
(c) The following may maintain an action to enjoin an individual or entity from continuing to violate this section:
(1) The board.
(2) The attorney general.
(3) The prosecuting attorney of a county in which a violation occurs.
(d) A purchaser has a private right of action against a seller who commits an uncured deceptive act.
(e) A trustee or escrow agent, acting as a fiduciary, that disburses funds in a trust or escrow account established under this chapter without verifying that the seller has delivered the services or merchandise for which the funds were deposited through the use of documentation required under rules adopted by the state board of funeral and cemetery service established by IC 25-15-9-1 commits a Class A infraction.
(f) A person who knowingly or intentionally uses or disburses funds in a trust or escrow account established under this chapter for purposes other than the purposes required under this chapter commits a Level 5 felony.
As added by P.L.114-1999, SEC.19. Amended by P.L.61-2008, SEC.10; P.L.143-2009, SEC.18; P.L.158-2013, SEC.306.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 13. Payment of Funeral, Burial Services, or Merchandise in Advance of Need › 30-2-13-39. Prohibited Relationships Between Sellers and Trustees or Escrow Agents

Sec. 39. (a) This section does not apply to a trust funded by the method described in section 11(c) of this chapter.
(b) A seller may not be an affiliate, a parent, or a subsidiary organization of the trustee or escrow agent, acting as a fiduciary, of a trust or escrow account established after June 30, 2008, to hold consideration paid for services or merchandise subject to a contract entered into under this chapter by the seller and a purchaser.
As added by P.L.61-2008, SEC.11.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-0.1. Application of Chapter; Application of Certain Amendments to Chapter

Sec. 0.1. (a) This chapter applies to the following:
(1) Every trust existing on or created after January 1, 2003, except as otherwise expressly provided in this chapter or by the terms of the trust.
(2) Every decedent's estate existing on or created after January 1, 2003, to the extent that under other applicable law or the decedent's will, the personal representative of the estate is required or allowed to account for and distribute income received during administration of the estate separately from the corpus.
(b) The amendments made to section 31 of this chapter by P.L.143-2009 apply to a trust described in section 31(h) of this chapter, on and after the following dates:
(1) If the trust is not funded as of July 1, 2009, the date of the decedent's death.
(2) If the trust is initially funded in the calendar year beginning January 1, 2009, the date of the decedent's death.
(3) If the trust is not described in subdivision (1) or (2), January 1, 2009.
(c) The amendments made to this section and to sections 3, 12, 14, 18, 19, 20, 21, and 38 of this chapter and the addition of section 13.5 of this chapter by legislation enacted in the 2014 regular session of the general assembly apply to the following:
(1) The estate of a decedent dying on or after July 1, 2013.
(2) In the case of a trust existing on or created after January 1, 2003:
(A) to the principal and income receipts of the trust; and
(B) to distributions received and made by the trust before, on, or after July 1, 2013.
As added by P.L.220-2011, SEC.486. Amended by P.L.51-2014, SEC.8.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-1. "Accounting Period" Defined

Sec. 1. As used in this chapter, "accounting period" means a calendar year unless another twelve (12) month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve (12) month period that begins when an income interest begins or ends when an income interest ends.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-2. "Beneficiary" Defined

Sec. 2. As used in this chapter, "beneficiary" includes, in the case of:
(1) a decedent's estate, an heir, and a devisee; and
(2) a trust, an income beneficiary, and a remainder beneficiary.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-3. "Fiduciary"

Sec. 3. As used in this chapter, "fiduciary" means the following:
(1) A personal representative, including an executor, an administrator, a successor personal representative, a special administrator, or a person performing substantially the same function with respect to a decedent's estate that meets the requirements of section 13.5 of this chapter.
(2) A trustee.
As added by P.L.84-2002, SEC.2. Amended by P.L.51-2014, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-4. "Income" Defined

Sec. 4. As used in this chapter, "income" means money or property that a fiduciary receives as current return from a principal asset. The term includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in sections 21 through 35 of this chapter.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-5. "Income Beneficiary" Defined

Sec. 5. As used in this chapter, "income beneficiary" means a person to whom net income of a trust is or may be payable.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-6. "Income Interest" Defined

Sec. 6. As used in this chapter, "income interest" means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-7. "Mandatory Income Interest" Defined

Sec. 7. As used in this chapter, "mandatory income interest" means the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-8. "Net Income" Defined

Sec. 8. As used in this chapter, "net income" means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under this chapter to or from income during the period.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-9. "Person" Defined

Sec. 9. As used in this chapter, "person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government; governmental subdivision, agency, or instrumentality; public corporation, or any other legal or commercial entity.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-10. "Principal" Defined

Sec. 10. As used in this chapter, "principal" means property that is held in trust for distribution to a remainder beneficiary when the trust terminates or that will remain perpetually vested in the trustee.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-11. "Remainder Beneficiary" Defined

Sec. 11. As used in this chapter, "remainder beneficiary" means a person entitled to receive principal when an income interest ends.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-12. "Terms of a Trust"

Sec. 12. As used in this chapter, "terms of a trust" means the manifestation of the intent of:
(1) a settlor with respect to a trust; or
(2) a decedent with respect to a trust established under the decedent's will;
expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct.
As added by P.L.84-2002, SEC.2. Amended by P.L.51-2014, SEC.10.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-13. "Trustee" Defined

Sec. 13. As used in this chapter, "trustee" includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-13.5. Personal Representative as a Fiduciary

Sec. 13.5. A personal representative, including an executor, an administrator, a successor personal representative, a special administrator, or a person performing substantially the same function with respect to a decedent's estate, is a fiduciary for purposes of this chapter if:
(1) under the terms of a decedent's will this chapter applies to the administration of the estate; or
(2) under other applicable law, the personal representative is required or allowed to account for and distribute income received during administration of the estate separately from the corpus of the estate.
As added by P.L.51-2014, SEC.11.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-14. Allocating Receipts and Disbursements Between Principal and Income

Sec. 14. (a) The following applies to a fiduciary in allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of this chapter:
(1) A fiduciary shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this chapter.
(2) A fiduciary may administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this chapter. An inference that the fiduciary has improperly exercised the discretion does not arise from the fact that the fiduciary has made or has not made an allocation contrary to a provision of this chapter.
(3) A fiduciary shall administer a trust in accordance with this chapter if the terms of the trust do not contain a different provision or do not give the fiduciary a discretionary power of administration.
(4) A fiduciary shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust or the will and this chapter do not provide a rule for allocating the receipt or disbursement to or between principal and income.
(b) In exercising the power to adjust under section 15 of this chapter or a discretionary power of administration regarding a matter within the scope of this chapter, whether granted by the terms of a trust, a will, or this chapter, a fiduciary shall administer a trust or an estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intention that the fiduciary shall or may favor one (1) or more of the beneficiaries. A determination in accordance with this chapter is presumed to be fair and reasonable to all of the beneficiaries.
As added by P.L.84-2002, SEC.2. Amended by P.L.51-2014, SEC.12.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-19. Beneficiary's Share of Net Income

Sec. 19. (a) Each beneficiary described in section 18(a)(4) of this chapter is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one (1) distribution of assets to beneficiaries to whom this section applies, each beneficiary, including a beneficiary who does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of death or terminating event or earlier distribution date but has not distributed as of the current distribution date.
(b) In determining a beneficiary's share of net income, the following rules apply:
(1) The beneficiary is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold to meet principal obligations.
(2) The beneficiary's fractional interest in the undistributed principal assets must be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts not in trust.
(3) The beneficiary's fractional interest 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.
(4) The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.
(c) If a fiduciary does not distribute all of the collected but undistributed net income to each person as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income.
(d) A fiduciary may apply the rules in this section, to the extent that the fiduciary considers it appropriate, to net gain or loss realized after the date of death or terminating event or earlier distribution date from the disposition of a principal asset if this section applies to the income from the asset.
As added by P.L.84-2002, SEC.2. Amended by P.L.51-2014, SEC.14.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.