469.423. Allocations by trustee--entity defined. - Missouri Statutes

Allocations by trustee--entity defined.

469.423. 1. For purposes of this section, the term "entity" means acorporation, partnership, limited liability company, regulated investmentcompany, real estate investment trust, common trust fund, or any otherorganization in which a trustee has an interest, other than a trust orestate to which section 469.425 applies, a business or activity to whichsection 469.427 applies, or an asset-backed security to which section469.449 applies.

2. Except as otherwise provided in this section, a trustee shallallocate to income money received from an entity.

3. A trustee shall allocate the following receipts from an entity toprincipal:

(1) Property other than money;

(2) Money received in one distribution or a series of relateddistributions in exchange for part or all of a trust's interest in theentity;

(3) Money received in total or partial liquidation of the entity; and

(4) Money received from an entity that is a regulated investmentcompany or a real estate investment trust if the money distributed is acapital gain dividend for federal income tax purposes.

4. Money is received in partial liquidation:

(1) To the extent that the entity, at or near the time of adistribution, indicates that such money is a distribution in partialliquidation; or

(2) If the total amount of money and property received in adistribution or series of related distributions is greater than twentypercent of the entity's gross assets, as shown by the entity's year-endfinancial statements immediately preceding the initial receipt.

5. Money is not received in partial liquidation, nor may it be takeninto account pursuant to subdivision (2) of subsection 4 of this section,to the extent that such money does not exceed the amount of income tax thata trustee or beneficiary shall pay on taxable income of the entity thatdistributes the money.

6. A trustee may rely upon a statement made by an entity about thesource or character of a distribution if the statement is made at or nearthe time of distribution by the entity's board of directors or other personor group of persons authorized to exercise powers to pay money or transferproperty comparable to those of a corporation's board of directors.

(L. 2001 H.B. 241, A.L. 2004 H.B. 1511)