§ 37A-3-301. When right to income begins and ends. - North Carolina Statutes

Article 3.

Apportionment atBeginning and End of Income Interest.

§ 37A‑3‑301.  Whenright to income begins and ends.

(a)        An incomebeneficiary is entitled to net income from the date on which the incomeinterest begins. An income interest begins on the date specified in the termsof the trust or, if no date is specified, on the date an asset becomes subjectto a trust or successive income interest.

(b)        An asset becomessubject to a trust:

(1)        On the date it istransferred to the trust in the case of an asset that is transferred to a trustduring the transferor's life;

(2)        On the date of atestator's death in the case of an asset that becomes subject to a trust byreason of a will, even if there is an intervening period of administration ofthe testator's estate; or

(3)        On the date of anindividual's death in the case of an asset that is transferred to a fiduciaryby a third party because of the individual's death.

(c)        An asset becomessubject to a successive income interest on the day after the preceding incomeinterest ends, as determined under subsection (d) of this section, even ifthere is an intervening period of administration to wind up the precedingincome interest.

(d)        An income interestends on the day before an income beneficiary dies or another terminating eventoccurs or on the last day of a period during which there is no beneficiary towhom a trustee may distribute income. (2003‑232, s. 2.)