58-9-202. Distribution to residuary and remainder beneficiaries. - Kansas Statutes

58-9-202

Chapter 58.--PERSONAL AND REAL PROPERTY Part 2.--DECEDENT'S ESTATE OR TERMINATING INCOME INTEREST Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)

      58-9-202.   Distribution to residuary and remainderbeneficiaries.(a) Each beneficiary described in subsection (4) of K.S.A. 58-9-201,and amendmentsthereto, is entitled to receive aportion of the net income equal to the beneficiary's fractional interestinundistributed principal assets, using values as of the distribution date. If afiduciarymakes more than one distribution of assets to beneficiaries to whom thissectionapplies, each beneficiary, including one who does not receive part of thedistribution, is entitled, as of each distribution date, to the net income thefiduciaryhas received after the date of death or terminating event or earlierdistribution datebut has not distributed as of the current distribution date.

      (b)   In determining a beneficiary’s share of net income, thefollowing rulesapply:

      (1)   The beneficiary is entitled to receive a portion of the net incomeequal to the beneficiary’s fractional interest in the undistributedprincipal assetsimmediately before the distribution date, including assets that later may besold tomeet principal obligations.

      (2)   The beneficiary's fractional interest in the undistributedprincipalassets must be calculated without regard to property specifically given to abeneficiary and property required to pay pecuniary amounts not in trust.

      (3)   The beneficiary’s fractional interest in the undistributedprincipalassets must be calculated on the basis of the aggregate value of those assetsas ofthe distribution date without reducing the value by any unpaid principalobligation.

      (4)   The distribution date for purposes of this section may be the date asof which the fiduciary calculates the value of the assets if that date isreasonablynear the date on which assets are actually distributed.

      (c)   If a fiduciary does not distribute all of the collected but undistributednetincome to each person as of a distribution date, the fiduciary shall maintainappropriate records showing the interest of each beneficiary in that netincome.

      (d)   A fiduciary may apply the rules in this section, to the extent that thefiduciary considers it appropriate, to net gain or loss realized after the dateof deathor terminating event or earlier distribution date from the disposition of aprincipalasset if this section applies to the income from the asset.

      History:   L. 2000, ch. 61, § 6; July 1.