§ 37A-3-302. Apportionment of receipts and disbursements when decedent dies or income interest begins. - North Carolina Statutes

§ 37A‑3‑302. Apportionment of receipts and disbursements when decedent dies or incomeinterest begins.

(a)        A trustee shallallocate an income receipt or disbursement, other than one to which G.S. 37A‑2‑201(1)applies to principal, if its due date occurs before a decedent dies in the caseof an estate or before an income interest begins in the case of a trust orsuccessive income interest.

(b)        A trustee shallallocate an income receipt or disbursement to income if its due date occurs onor after the date on which a decedent dies or an income interest begins and itis a periodic due date. An income receipt or disbursement shall be treated asaccruing from day to day if its due date is not periodic or it has no due date.The portion of the receipt or disbursement accruing before the date on which adecedent dies or an income interest begins shall be allocated to principal, andthe balance shall be allocated to income.

(c)        An item of incomeor an obligation is due on the date the payer is required to make a payment. Ifa payment date is not stated, there is no due date for the purposes of thisChapter. Distributions to shareholders or other owners from an entity to whichG.S. 37A‑4‑401 applies are considered to be due on the date fixedby the entity for determining who is entitled to receive the distribution or,if no date is fixed, on the declaration date for the distribution. A due dateis periodic for receipts or disbursements that shall be paid at regularintervals under a lease or an obligation to pay interest or if an entitycustomarily makes distributions at regular intervals. (2003‑232, s. 2.)