2023 New York Laws › EPT - Estates, Powers and Trusts › Article 11-A - Uniform Principal and Income Act › Part 2 - Decedent's Estate or Terminating Income Interest › 11-A-2.2 - Distribution to Risiduary and Remainder Beneficiaries

§ 11-A-2.2 Distribution to residuary and remainder beneficiaries
(a)  Each  beneficiary described in paragraph 11-A-2.1 (4) 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, provided, however, that any amount allowed  as
a  tax  deduction  to  the  estate  for  income  payable to a charitable
organization shall  be  paid,  without  diminution  for  taxes,  to  the
charitable  organization entitled to receive such income. If a fiduciary
makes more than one distribution of assets to beneficiaries to whom this
section applies, each beneficiary, including one who  does  not  receive
part  of the distribution, is entitled, as of each distribution date, to
the net income the fiduciary has received after the  date  of  death  or
terminating  event  or earlier distribution date but has not distributed
as of the current distribution date.
(b) In determining a beneficiary's share of net income, the  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.
(e) The portion of a beneficiary determined  under  paragraph  (a)  is
subject   to   the   fiduciary's   further  power  of  adjustment  under
subparagraph 11-2.3(b)(5), which adjustment if made shall be made to  or
from  the  principal  of  such  beneficiary's share. The fiduciary shall
maintain appropriate records showing  the  principal  interest  of  each
beneficiary, as adjusted.