469.415. Rights of beneficiaries to net income. - Missouri Statutes

Rights of beneficiaries to net income.

469.415. 1. Each beneficiary described in subdivision (4) of section469.413 is entitled to receive a portion of the net income equal to thebeneficiary's fractional interest in undistributed principal assets, usingvalues as of the distribution date. If a fiduciary makes more than onedistribution of assets to beneficiaries to whom this section applies, eachbeneficiary, including one who does not receive part of the distribution,is entitled, as of each distribution date, to the net income the fiduciaryhas received after the date of death or terminating event or earlierdistribution date but has not distributed as of the current distributiondate.

2. In determining a beneficiary's share of net income, the followingrules apply:

(1) The beneficiary is entitled to receive a portion of the netincome equal to the beneficiary's fractional interest in the undistributedprincipal assets immediately before the distribution date, including assetsthat later may be sold to meet principal obligations;

(2) The beneficiary's fractional interest in the undistributedprincipal assets shall be calculated without regard to propertyspecifically given to a beneficiary and property required to pay pecuniaryamounts not in trust;

(3) The beneficiary's fractional interest in the undistributedprincipal assets shall be calculated on the basis of the aggregate value ofthose assets as of the distribution date without reducing the value by anyunpaid principal obligation;

(4) The distribution date for purposes of this section may be thedate as of which the fiduciary calculates the value of the assets if thatdate is reasonably near the date on which assets are actually distributed.

3. If a fiduciary does not distribute all of the collected butundistributed net income to each person as of a distribution date, thefiduciary shall maintain appropriate records showing the interest of eachbeneficiary in that net income.

4. A fiduciary may apply the rules in this section, to the extentthat the fiduciary considers it appropriate, to net gain or loss realizedafter the date of death or terminating event or earlier distribution datefrom the disposition of a principal asset if this section applies to theincome from the asset.

(L. 2001 H.B. 241)