55-277.8 - Apportionment of receipts and disbursements when decedent dies or income interest begins. - Virginia Statutes

§ 55-277.8. Apportionment of receipts and disbursements when decedent dies orincome interest begins.

A. A trustee shall allocate an income receipt or disbursement other than oneto which subdivision 1 of § 55-277.5 applies to principal if its due dateoccurs before a decedent dies in the case of an estate or before an incomeinterest begins in the case of a trust or successive income interest.

B. A trustee shall allocate an income receipt or disbursement to income ifits due date occurs on or after the date on which a decedent dies or anincome interest begins and it is a periodic due date. An income receipt ordisbursement must be treated as accruing from day to day if its due date isnot periodic or it has no due date. The portion of the receipt ordisbursement accruing before the date on which a decedent dies or an incomeinterest begins must be allocated to principal and the balance must beallocated to income.

C. An item of income or an obligation is due on the date the payer isrequired to make a payment. If a payment date is not stated, there is no duedate for the purposes of this chapter. Distributions to shareholders or otherowners from an entity to which § 55-277.10 applies are deemed to be due onthe date fixed by the entity for determining who is entitled to receive thedistribution or, if no date is fixed, on the declaration date for thedistribution. A due date is periodic for receipts or disbursements that mustbe paid at regular intervals under a lease or an obligation to pay interestor if an entity customarily makes distributions at regular intervals.

(1999, c. 975.)