Section 15-511 - Principal receipts. - Maryland Statutes

§ 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. 
 

[2000, ch. 292, § 2.]