Maine Revised Statutes Title 18-C Sec. 7-448 – Insubstantial allocations not required
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If a trustee determines that an allocation between principal and income required by section 7?449, 7?450, 7?451, 7?452 or 7?455 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in section 7?404, subsection 3 applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in section 7?404, subsection 4 and may be released for the reasons and in the manner described in section 7?404, subsection 5. An allocation is presumed to be insubstantial if: [PL 2017, c. 402, Pt. A, §2 (NEW); PL 2019, c. 417, Pt. B, §14 (AFF).]
1. Increase or decrease of less than 10%. The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10%; or
[PL 2017, c. 402, Pt. A, §2 (NEW); PL 2019, c. 417, Pt. B, §14 (AFF).]
Terms Used In Maine Revised Statutes Title 18-C Sec. 7-448
- Accounting period: includes a portion of a calendar year or other 12-month period that begins when an income interest begins or ends when an income interest ends. See Maine Revised Statutes Title 18-C Sec. 7-402
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Income: includes a portion of receipts from a sale, exchange or liquidation of a principal asset, to the extent provided in subpart 4. See Maine Revised Statutes Title 18-C Sec. 7-402
- 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 Part to or from income during the period. See Maine Revised Statutes Title 18-C Sec. 7-402
- Principal: means property held in trust for distribution to a remainder beneficiary when the trust terminates. See Maine Revised Statutes Title 18-C Sec. 7-402
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional or successor trustee, whether or not appointed or confirmed by a court. See Maine Revised Statutes Title 18-C Sec. 7-402
2. Value of asset less than 10%. The value of the asset producing the receipt for which the allocation would be made is less than 10% of the total value of the trust’s assets at the beginning of the accounting period.
[PL 2017, c. 402, Pt. A, §2 (NEW); PL 2019, c. 417, Pt. B, §14 (AFF).]
SECTION HISTORY
PL 2017, c. 402, Pt. A, §2 (NEW). PL 2017, c. 402, Pt. F, §1 (AFF). PL 2019, c. 417, Pt. B, §14 (AFF).