Indiana Code 30-2-14-20. Income interest; asset subject to trust
(b) An asset becomes subject to a trust on the following dates:
Terms Used In Indiana Code 30-2-14-20
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- beneficiary: includes , in the case of:
Indiana Code 30-2-14-2
- Decedent: A deceased person.
- income: means money or property that a fiduciary receives as current return from a principal asset. See Indiana Code 30-2-14-4
- income beneficiary: means a person to whom net income of a trust is or may be payable. See Indiana Code 30-2-14-5
- income interest: means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion. See Indiana Code 30-2-14-6
- net income: means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under this chapter to or from income during the period. See Indiana Code 30-2-14-8
- principal: means property that is held in trust for distribution to a remainder beneficiary when the trust terminates or that will remain perpetually vested in the trustee. See Indiana Code 30-2-14-10
- Probate: Proving a will
(2) On the date the asset is distributed to the trust from the decedent‘s estate, if the income received during the administration of the estate was accounted for and distributed by the estate as part of the corpus of the estate in accordance with IC 29-1-17-7.
(3) On the date of the decedent’s death if, under the terms of the decedent’s will or other applicable law, income received during administration of the decedent’s estate was accounted for and distributed by the estate as income, and not as part of the corpus of the estate.
(4) On the date of an individual’s death, in the case of an asset that is not part of the probate estate (as defined in IC 29-1-1-3) and that is transferred to a trust or becomes a part of a trust because of the individual’s death.
(c) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (d), even if there is an intervening period of administration to wind up the preceding income interest.
(d) An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.
(e) This section applies only for purposes of determining the period in which an income beneficiary is entitled or eligible to receive any net income of a trust. This section does not control how receipts and disbursements are allocated to or between principal and income during that period. Amounts received by a trust from a decedent’s estate or another trust as a distribution of principal may be allocable to principal under section 24 of this chapter even to the extent the amounts received include income of the distributing estate or trust received or accrued after the beneficiary’s income interest begins.
As added by P.L.84-2002, SEC.2. Amended by P.L.51-2014, SEC.15.