58-9-413. Property not productive of income. - Kansas Statutes

58-9-413

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

      58-9-413.   Property not productive ofincome.(a) If a marital deduction is allowed for all or part of atrust whoseassetsconsist substantially of property that does not provide the spouse withsufficientincome from or use of the trust assets, and if the amounts that the trusteetransfersfrom principal to income under K.S.A. 58-9-104 and amendmentsthereto anddistributesto the spouse fromprincipal pursuant to the terms of the trust are insufficient to provide thespousewith the beneficial enjoyment required to obtain the marital deduction, thespousemay require the trustee to make property productive of income, convert propertywithin a reasonable time, or exercise the power conferred by subsection (a) ofK.S.A. 58-9-104 and amendments thereto. Thetrustee may decide which action or combination of actions to take.

      (b)   In cases not governed by subsection (a), proceeds from the sale orother disposition of an asset are principal without regard to the amount ofincome the asset produces during any accounting period.

      History:   L. 2000, ch. 61, § 22; July 1.