reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part I - Definitions; Fiduciary Duties › Section 15-501 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    (1)    “Accounting period” means a calendar year unless another 12-month period is selected by a fiduciary.
(2)    “Accounting period” includes a portion of a calendar year or other 12-month period that begins when an income interest begins or ends when an income interest ends.
(c)    “Beneficiary” includes, in the case of a decedent’s estate, an heir and legatee and, in the case of a trust, an income beneficiary and a remainder beneficiary.
(d)    (1)    “Fiduciary” means a personal representative or a trustee.
(2)    “Fiduciary” includes an executor, administrator, successor personal representative, special administrator, and a person performing substantially the same function.
(e)    (1)    “Income” means money or property that a fiduciary receives as current return from a principal asset.
(2)    “Income” includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in Part IV of this subtitle.
(f)    “Income beneficiary” means a person to whom net income of a trust is or may be payable.
(g)    “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.
(h)    “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.
(i)    “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 subtitle to or from income during the period.
(j)    “Person” means an individual, corporation, business trust, statutory 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.
(k)    “Principal” means property held in trust for distribution to a remainder beneficiary when the trust terminates.
(l)    “Remainder beneficiary” means a person entitled to receive principal when an income interest ends.
(m)    “Terms of a trust” means the manifestation of the intent of a settlor or decedent with respect to the trust, expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct.
(n)    “Trustee” includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court.
(o)    “Unitrust” means a trust from which the income beneficiary is entitled to receive annually a fixed percentage of the fair market value of the trust’s assets.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part I - Definitions; Fiduciary Duties › Section 15-502 - Fiduciary Duties; General Principles

(a)    In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of Parts II and III of this subtitle, a fiduciary:
(1)    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 subtitle;
(2)    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 subtitle;
(3)    Shall administer a trust or estate in accordance with this subtitle if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration; and
(4)    Shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this subtitle do not provide a rule for allocating the receipt or disbursement to or between principal and income.
(b)    (1)    In exercising a discretionary power of administration regarding a matter within the scope of this subtitle, whether granted by the terms of a trust, a will, or this subtitle, a fiduciary shall administer a trust or 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 or more of the beneficiaries.
(2)    A determination in accordance with this subtitle is presumed to be fair and reasonable to all of the beneficiaries.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part II - Decedent's Estate or Terminating Income Interest › Section 15-504 - Distribution to Residuary and Remainder Beneficiaries

(a)    (1)    Each beneficiary described in § 15–503(d) of this subtitle 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.
(2)    If a fiduciary makes more than one distribution of assets to beneficiaries to whom this section applies, each beneficiary, including one who does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of death or terminating event or earlier distribution date but has not distributed as of the current distribution date.
(b)    In determining a beneficiary’s share of net income:
(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 shall 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 shall be calculated on the basis of the aggregate value of those assets as of the distribution date without reducing the value by any unpaid principal obligation; and
(4)    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.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part III - Apportionment at Beginning and End of Income Interest › Section 15-505 - When Right to Income Begins and Ends

(a)    (1)    An income beneficiary is entitled to net income from the date on which the income interest begins.
(2)    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:
(1)    On the date it 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 of a testator’s death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator’s estate; or
(3)    On the date of an individual’s death in the case of an asset that is transferred to a fiduciary by a third party 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) of this section, 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.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part III - Apportionment at Beginning and End of Income Interest › Section 15-506 - Apportionment of Receipts and Disbursements When Decedent Dies or Income Interest Begins

(a)    A trustee shall allocate an income receipt or disbursement other than one to which § 15–503(b) of this subtitle applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.
(b)    (1)    A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date.
(2)    An income receipt or disbursement shall be treated as accruing from day to day if its due date is not periodic or it has no due date.
(3)    The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins shall be allocated to principal and the balance shall be allocated to income.
(c)    (1)    An item of income or an obligation is due on the date the payer is required to make a payment.
(2)    If a payment date is not stated, there is no due date for the purposes of this subtitle.
(3)    Distributions to shareholders or other owners from an entity to which § 15–508 of this subtitle applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution.
(4)    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.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part III - Apportionment at Beginning and End of Income Interest › Section 15-507 - Apportionment When Income Interest Ends

(a)    (1)    In this section, “undistributed income” means net income received before the date on which an income interest ends.
(2)    “Undistributed income” 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)    (1)    Except as provided in paragraph (2) of this subsection, 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.
(2)    If a beneficiary has an unqualified power to revoke more than 5% of the trust immediately before the income interest ends, the undistributed income from the portion of the trust that may be revoked shall 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.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-509 - Distribution From Trust or Estate

(a)    A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate.
(b)    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, § 15–508 or § 15–522 of this subtitle applies to a receipt from the trust.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-510 - Separate Accounting Methods in Business and Other Activities Conducted by Trustee

(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)    (1)    A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust’s general accounting records.
(2)    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 § 15-521 of this subtitle applies.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-511 - Principal Receipts

A trustee shall allocate to principal:
(1)    To the extent not allocated to income under this subtitle, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its 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 this subtitle;
(3)    Amounts recovered from third parties to reimburse the trust because of disbursements described in § 15-524(a)(9) of this subtitle 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 Part III of this subtitle.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-512 - Rental Property

(a)    To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease.
(b)    An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, shall be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee’s contractual obligations have been satisfied with respect to that amount.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-513 - Obligation to Pay Money

(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)    (1)    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 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.
(2)    If the obligation matures within 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 shall be allocated to income.
(c)    This section does not apply to an obligation to which § 15-516, § 15-517, § 15-518, § 15-519, § 15-521, or § 15-522 of this subtitle applies.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-514 - Insurance Policies and Similar Contracts

(a)    Except as provided in subsection (b) of this section, a trustee shall:
(1)    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; and
(2)    Allocate dividends on an insurance policy:
(i)    If the premiums on the insurance policy are paid from income, to income; and
(ii)    If the premiums on the insurance policy are paid from principal, to 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 § 15-510 of this subtitle, loss of profits from a business.
(c)    This section does not apply to a contract to which § 15-516 of this subtitle applies.
(d)    (1)    This subsection applies to any obligation for the payment of money at a future time, provided the obligation was held as an asset of a trust that was irrevocable on October 1, 2000 (regardless of whether the asset was acquired before or after October 1, 2000), and provided the trustee makes an irrevocable election on the first year–end accounting of the trust’s principal and income stated after September 30, 2000 to allocate distributions in accordance with this subsection, including:
(i)    A bond;
(ii)    A zero coupon bond;
(iii)    An annuity contract before unitization;
(iv)    A life insurance contract before the death of the insured; and
(v)    An interest in a common trust fund as defined under § 584 of the Internal Revenue Code with respect to charitable remainder trusts as defined under § 664 of the Internal Revenue Code and pooled income funds as defined under § 642(c)(5) of the Internal Revenue Code.
(2)    Unless otherwise provided in the trust instrument or in this subtitle, the increment in value of an obligation for the payment of money payable at a future time in accordance with a fixed, variable, or discretionary schedule of appreciation in excess of the price at which it was issued shall be distributable as income.
(3)    (i)    The increment in value is distributable to the beneficiary who was the income beneficiary at the time of the increment from the first principal cash available or, if none is available, when realized by sale, redemption, or other disposition.
(ii)    Whenever unrealized increment is distributed as income, but out of principal, the principal shall be reimbursed for the increment when realized.
(4)    For purposes of this subsection, the increment in value of an obligation for the payment of money shall be available for distribution only when the trustee receives cash on account of the obligation.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-515 - Insubstantial Allocations Not Required

(a)    (1)    If a trustee determines that an allocation between principal and income required by § 15-516, § 15-517, § 15-518, § 15-519, or § 15-522 of this subtitle is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in § 15-502.2(d) of this subtitle applies to the allocation.
(2)    This power may be exercised by a cotrustee in the circumstances described in § 15-502.2(e) of this subtitle, and may be released for the reasons and in the manner described in § 15-502.2(f) of this subtitle.
(b)    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 10 percent; or
(2)    The value of the asset producing the receipt for which the allocation would be made is less than 10 percent of the total value of the trust’s assets at the beginning of the accounting period.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-517 - Liquidating Asset

(a)    (1)    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.
(2)    “Liquidating asset” includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than 1 year under an arrangement that does not provide for the payment of interest on the unpaid balance.
(3)    “Liquidating asset” does not include a payment subject to § 15-516 of this subtitle, resources subject to § 15-518 of this subtitle, timber subject to § 15-519 of this subtitle, an activity subject to § 15-521 of this subtitle, an asset subject to § 15-522 of this subtitle, or any asset for which the trustee establishes a reserve for depreciation under § 15-525 of this subtitle.
(b)    A trustee shall allocate to income 10 percent of the receipts from a liquidating asset and the balance to principal.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-518 - Minerals, Water, and Other Natural Resources

(a)    To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:
(1)    If received as nominal delay rental or nominal annual rent on a lease, a receipt shall be allocated to income;
(2)    If received from a production payment, a receipt shall be allocated:
(i)    If and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent, to income; and
(ii)    The balance shall 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, 90% shall be allocated to principal and the balance to income; and
(4)    If an amount is received from a working interest or any other interest not provided for in paragraph (1), (2), or (3) of this subsection, 90% of the net amount received shall be allocated to principal and the balance to income.
(b)    (1)    An amount received on account of an interest in water that is renewable shall be allocated to income.
(2)    If the water is not renewable, 90% of the amount shall be allocated to principal and the balance to income.
(c)    This subtitle 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)    (1)    If a trust owns an interest in minerals, water, or other natural resources on October 1, 2000, the trustee may allocate receipts from the interest as provided in this subtitle or in the manner used by the trustee before October 1, 2000.
(2)    If the trust acquires an interest in minerals, water, or other natural resources after October 1, 2000, the trustee shall allocate receipts from the interest as provided in this subtitle.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-519 - Timber

(a)    To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to 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 the lease of timberland or from 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 paragraphs (1) and (2) of this subsection; or
(4)    To principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to paragraph (1), (2), or (3) of this subsection.
(b)    In determining net receipts to be allocated pursuant to subsection (a) of this section, a trustee shall deduct and transfer to principal a reasonable amount for depletion.
(c)    This subtitle applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.
(d)    (1)    If a trust owns an interest in timberland on October 1, 2001, the trustee may allocate net receipts from the sale of timber and related products as provided in this subtitle or in the manner used by the trustee before October 1, 2000.
(2)    If the trust acquires an interest in timberland after October 1, 2000, the trustee shall allocate net receipts from the sale of timber and related products as provided in this subtitle.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-520 - Property Not Productive of Income

(a)    (1)    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 trustee transfers from principal to income under § 15-502.2(a) of this subtitle and distributes to the spouse from principal in accordance with the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or may request the trustee exercise the power conferred by § 15-502.2(a) of this subtitle.
(2)    The trustee may decide which action or combination of actions to take.
(b)    In cases not governed by subsection (a) of this section, proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-521 - Derivatives and Options

(a)    In this section, “derivative” means a contract or 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 trustee does not account under § 15-510 of this subtitle for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.
(c)    (1)    If a trustee 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 trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option shall be allocated to principal.
(2)    An amount paid to acquire the option shall be paid from principal.
(3)    A gain or loss realized on the exercise of an option, including an option granted to a settlor of the trust for services rendered, shall be allocated to principal.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part IV - Allocation of Receipts During Administration of Trust › Section 15-522 - Asset-Backed Securities

(a)    (1)    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.
(2)    “Asset-backed security” includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return.
(3)    “Asset-backed security” does not include an asset to which § 15-508 or § 15-516 of this subtitle applies.
(b)    If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment which the payer identifies as being from interest or other current return and shall allocate the balance of the payment to principal.
(c)    (1)    If a trust receives one or more payments in exchange for the trust’s entire interest in an asset–backed security in one accounting period, the trustee shall allocate the payments to principal.
(2)    If a payment is one of a series of payments that will result in the liquidation of the trust’s interest in the security over more than one accounting period, the trustee shall allocate 10% of the payment to income and the balance to principal.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part V - Allocation of Disbursements During Administration of Trust › Section 15-523 - Disbursements From Income

A trustee shall make the following disbursements from income to the extent that they are not disbursements to which § 15–503(c)(2) or (3) of this subtitle apply:
(1)    Regular compensation of the trustee on income, if determined in accordance with § 14.5–708(b) of this article;
(2)    That portion of the regular compensation of the trustee, if the compensation is determined in a manner other than in accordance with § 14.5–708(b) and (c) of this article, and that portion of the compensation of any person providing investment advisory or custodial services to the trustee, as the trustee determines is fair and reasonable in accordance with § 15–502(b) of this subtitle;
(3)    One–half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests;
(4)    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; and
(5)    Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part V - Allocation of Disbursements During Administration of Trust › Section 15-524 - Disbursements From Principal

(a)    A trustee shall make the following disbursements from principal:
(1)    Regular compensation of the trustee on principal, if determined in accordance with § 14.5–708(c) of this article;
(2)    That portion of the regular compensation of the trustee, if the compensation is determined in a manner other than in accordance with § 14.5–708(b) and (c) of this article, and that portion of the compensation of any person providing investment advisory or custodial services to the trustee, as the trustee determines is fair and reasonable in accordance with § 15–502(b) of this subtitle;
(3)    One–half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests;
(4)    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;
(5)    Payments on the principal of a trust debt;
(6)    Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;
(7)    Premiums paid on a policy of insurance not described in § 15–523(5) of this subtitle of which the trust is the owner and beneficiary;
(8)    Estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust; and
(9)    Disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters.
(b)    If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, 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.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part V - Allocation of Disbursements During Administration of Trust › Section 15-525 - Transfers 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 1 year.
(b)    A trustee may transfer 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:
(1)    Of that portion of real property used or available for use by a beneficiary as a residence or of 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)    Under this section if the trustee is accounting under § 15-510 of this subtitle for the business or activity in which the asset is used.
(c)    An amount transferred to principal need not be held as a separate fund.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part V - Allocation of Disbursements During Administration of Trust › Section 15-526 - Transfers From Income to Reimburse Principal

(a)    If a trustee makes or expects to make a principal disbursement described in this section, the trustee 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 trustee 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;
(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; and
(5)    Disbursements described in § 15-524(a)(9) of this subtitle.
(c)    If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection (a) of this section.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part V - Allocation of Disbursements During Administration of Trust › Section 15-527 - Income Taxes

(a)    A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income.
(b)    A tax required to be paid by a trustee 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 trustee on the trust’s share of an entity’s taxable income shall be paid:
(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) of this section, the trustee 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.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part V - Allocation of Disbursements During Administration of Trust › Section 15-528 - Adjustments 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:
(1)    Elections and decisions, other than those described in subsection (b) of this section, 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 or a distribution from the estate or trust; or
(3)    Subject to subsection (b) of this section, the ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust, or a beneficiary.
(b)    A trustee shall make an adjustment from principal to income to compensate an income beneficiary for taxes paid or payable by the income beneficiary in respect of the taxable income of an entity that is taxable to the income beneficiary but that is distributed to the trustee and allocated to principal.
(c)    (1)    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 an estate, trust, or beneficiary are decreased, each 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.
(2)    The total reimbursement must 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.
(3)    The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 5 - Maryland Uniform Principal and Income Act › Part V - Allocation of Disbursements During Administration of Trust › Section 15-529 - Uniformity of Application and Construction

This subtitle shall be so applied and construed to effectuate its general purpose to make uniform the law with respect to the subject matter of this subtitle among those states which enact it.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 6 - Maryland Fiduciary Access to Digital Assets Act › Section 15-603 - Direction to Disclose Information

(a)    (1)    A user may use an online tool to direct a custodian to disclose to a designated recipient or not disclose some or all of the user’s digital assets, including the content of electronic communications sent or received by the user.
(2)    If the online tool allows the user to modify or delete a direction at any time, a direction under paragraph (1) of this subsection overrides a contrary direction by the user in a will, trust, power of attorney, or other record.
(b)    If the user does not use an online tool to give direction under subsection (a) of this section or if the custodian fails to provide an online tool, the user may, in a will, trust, power of attorney, or other record, allow or prohibit disclosure to a fiduciary of some or all of the user’s digital assets, including the content of electronic communications sent or received by the user.
(c)    A direction by a user under subsection (a) or (b) of this section shall override a contrary provision in a terms–of–service agreement, if the terms–of–service agreement does not require the user to act affirmatively and distinctly from the user’s assent to the terms of service.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 6 - Maryland Fiduciary Access to Digital Assets Act › Section 15-604 - Right to Access Digital Assets

(a)    This subtitle does not change or impair the right of a custodian or a user under a terms–of–service agreement to access or use the digital assets of the user.
(b)    This subtitle does not grant a fiduciary or designated recipient new or expanded rights other than those held by the user for whom or for whose estate or trust the fiduciary or designated recipient acts or represents.
(c)    A fiduciary’s or designated recipient’s access to digital assets may be modified or eliminated by:
(1)    A user;
(2)    Federal law; or
(3)    A terms–of–service agreement if the user has not provided direction under § 15–603 of this subtitle.
2023 Maryland Statutes › Estates and Trusts › Title 15 - Fiduciaries › Subtitle 6 - Maryland Fiduciary Access to Digital Assets Act › Section 15-605 - Disclosure of Digital Assets

(a)    When disclosing the digital assets of a user under this subtitle, a custodian may in its sole discretion:
(1)    Grant a fiduciary or designated recipient full access to the user’s account;
(2)    Grant a fiduciary or designated recipient partial access to the user’s account sufficient to perform the tasks with which the fiduciary or designated recipient is charged; or
(3)    Provide a fiduciary or designated recipient a copy in a record of a digital asset that, on the date that the custodian received the request for disclosure, the user could have accessed if the user were alive or had full capacity and had access to the account.
(b)    A custodian may assess a reasonable administrative charge for the cost of disclosing digital assets under this subtitle.
(c)    A custodian need not disclose under this subtitle a digital asset deleted by a user.
(d)    (1)    If a user directs or a fiduciary requests a custodian to disclose only a portion of the user’s digital assets under this subtitle, the custodian need not disclose the assets if segregation of the digital assets would impose an undue burden on the custodian.
(2)    If the custodian believes under paragraph (1) of this subsection that the direction or request imposes an undue burden, the custodian or fiduciary may seek an order from a court to disclose:
(i)    A subset, limited by date, of the user’s digital assets;
(ii)    All of the user’s digital assets to the fiduciary or designated recipient;
(iii)    None of the user’s digital assets; or
(iv)    All of the user’s digital assets to the court for review in camera.