(a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources under this section, the trustee shall allocate them as follows:

will 560x170

Need help with a review of a will?
Have it reviewed by a lawyer, get answers to your questions and move forward with confidence.
Connect with a lawyer now

Terms Used In Alaska Statutes 13.38.710

  • Decedent: A deceased person.
  • Donor: The person who makes a gift.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Trustee: A person or institution holding and administering property in trust.
(1) if received as nominal delay rent or nominal annual rent on a lease, a receipt shall be allocated to income;
(2) if received from a production payment, a receipt shall be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent; the balance shall be allocated to principal;
(3) if an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, 90 percent shall be allocated to principal, and the balance shall be allocated to income;
(4) if an amount is received from a working interest or any other interest not provided for in (1) – (3) of this subsection, 90 percent of the net amount received shall be allocated to principal, and the balance shall be allocated to income.
(b) An amount received on account of an interest in renewable water shall be allocated to income. An amount received on account of an interest in nonrenewable water shall be allocated as follows:

(1) 90 percent of the amount shall be allocated to principal; and
(2) the balance shall be allocated to income.
(c) This chapter applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.
  Previous section
Next section  
 Article 6 Contents