§ 37A-4-402. Distribution from trust or estate. - North Carolina Statutes

§ 37A‑4‑402. Distribution from trust or estate.

A trustee shall allocate toincome an amount received as a distribution of income from a trust or an estatein which the trust has an interest other than a purchased interest and shallallocate to principal an amount received as a distribution of principal fromthe trust or estate. If a trustee purchases an interest in a trust that is aninvestment entity, or a decedent or donor transfers an interest in a trust to atrustee, G.S. 37A‑4‑401 or G.S. 37A‑4‑415 applies to areceipt from the trust. (2003‑232, s. 2.)