469.435. Insubstantial amounts may be allocated to principal, exceptions--presumption of insubstantial amount, when. - Missouri Statutes

Insubstantial amounts may be allocated to principal,exceptions--presumption of insubstantial amount, when.

469.435. If a trustee determines that an allocation between principaland income required by section 469.437, 469.439, 469.441, 469.443 or469.449 is insubstantial, the trustee may allocate the entire amount toprincipal unless one of the circumstances described in subsection 3 ofsection 469.405 applies to the allocation. This power may be exercised bya cotrustee in the circumstances described in subsection 4 of section469.405 and may be released for the reasons and in the manner described insubsection 5 of section 469.405. An allocation is presumed to beinsubstantial if:

(1) The amount of the allocation would increase or decrease netincome in an accounting period, as determined before the allocation, byless than ten percent; or

(2) The value of the asset producing the receipt for which theallocation would be made is less than ten percent of the total value of thetrust's assets at the beginning of the accounting period.

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