469.443. Sale of timber and related products, allocation of net receipts. - Missouri Statutes

Sale of timber and related products, allocation of net receipts.

469.443. 1. To the extent that a trustee accounts for receipts fromthe sale of timber and related products pursuant to this section, thetrustee shall allocate the net receipts:

(1) To income to the extent that the amount of timber removed fromthe land does not exceed the rate of growth of the timber during theaccounting periods in which a beneficiary has a mandatory income interest;

(2) To principal to the extent that the amount of timber removed fromthe land exceeds the rate of growth of the timber or the net receipts arefrom the sale of standing timber;

(3) To or between income and principal if the net receipts are fromthe lease of timberland or from a contract to cut timber from land owned bya trust, by determining the amount of timber removed from the land underthe lease or contract and applying the rules in subdivisions (1) and (2) ofthis subsection; or

(4) To principal to the extent that advance payments, bonuses andother payments are not allocated pursuant to either subdivision (1), (2) or(3) of this subsection.

2. In determining net receipts to be allocated pursuant to subsection1 of this section, a trustee shall deduct and transfer to principal areasonable amount for depletion.

3. Sections 469.401 to 469.467 apply whether or not a decedent ortransferor was harvesting timber from the property before it became subjectto the trust.

4. If a trust owns an interest in timberland on August 28, 2001, thetrustee may allocate net receipts from the sale of timber and relatedproducts as provided in sections 469.401 to 469.467 or in the manner usedby the trustee before August 28, 2001. If the trust acquires an interestin timberland after August 28, 2001, the trustee shall allocate netreceipts from the sale of timber and related products as provided insections 469.401 to 469.467.

(L. 2001 H.B. 241)