58-9-408. Insubstantial allocations not required. - Kansas Statutes

58-9-408

Chapter 58.--PERSONAL AND REAL PROPERTY Part 4.--ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)

      58-9-408.   Insubstantial allocations notrequired.If a trustee determines that an allocation between principal andincomerequired byK.S.A. 58-9-409, 58-9-410, 58-9-411, 58-9-412 or 58-9-415 andamendmentsthereto is insubstantial, thetrustee may allocatetheentire amount to principal unless one of the circumstances described insubsection (c) of K.S.A. 58-9-104 and amendments thereto applies totheallocation.This power may be exercised by a cotrusteein thecircumstances described in subsection (d) of K.S.A. 58-9-104 andamendmentsthereto and may be released for the reasonsandin the manner described in subsection (e) of K.S.A. 58-9-104 andamendmentsthereto. An allocation is presumed to beinsubstantial if:

      (1)   The amount of the allocation would increase or decrease net income in anaccounting period, as determined before the allocation, by less than 10percent; or

      (2)   the value of the asset producing the receipt for which the allocationwould be made is less than 10 percent of the total value of the trust'sassets at thebeginning of the accounting period.

      History:   L. 2000, ch. 61, § 17; July 1.