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Texas Statutes (Last Updated: January 4, 2014) |
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PROPERTY CODE |
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Title 9. TRUSTS |
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Subtitle B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS |
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Chapter 116. UNIFORM PRINCIPAL AND INCOME ACT |
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Subchapter D. ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST |
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Part 2. RECEIPTS NOT NORMALLY APPORTIONED |
Sec. 116.161. PRINCIPAL RECEIPTS
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A trustee shall allocate to principal:
(1) to the extent not allocated to income under this chapter, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;
(2) money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this subchapter;
(3) amounts recovered from third parties to reimburse the trust because of disbursements described in Section 116.202(a)(7) or for other reasons to the extent not based on the loss of income;
(4) proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;
(5) net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and
(6) other receipts as provided in Part 3.