Kansas Statutes 58-9a,408. Insubstantial allocation not required
Terms Used In Kansas Statutes 58-9a,408
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Fiduciary: A trustee, executor, or administrator.
(a) If a fiduciary determines that an allocation between income and principal required by Kan. Stat. Ann. 2023 Supp. 58-9a-409, 58-9a-410, 58-9a-411, 58-9a-412 or 58-9a-415, and amendments thereto, is insubstantial, the fiduciary may allocate the entire amount to principal, unless Kan. Stat. Ann. 2023 Supp. 58-9a-203(e), and amendments thereto, applies to the allocation.
(b) A fiduciary may presume an allocation is insubstantial under subsection (a) if:
(1) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10%; and
(2) the asset producing the receipt to be allocated has a fair market value less than 10% of the total fair market value of the assets owned or held by the fiduciary at the beginning of the accounting period.
(c) The power to make a determination under subsection (a) may be:
(1) Exercised by a co-fiduciary in the manner described in Kan. Stat. Ann. 2023 Supp. 58-9a-203(f), and amendments thereto; or
(2) released or delegated for a reason described in Kan. Stat. Ann. 2023 Supp. 58-9a-203(g), and amendments thereto, and in the manner described in Kan. Stat. Ann. 2023 Supp. 58-9a-203(h), and amendments thereto.