A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest and shall allocate to principal an amount received as a distribution of principal from the trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in a trust to a trustee, N.C. Gen. Stat. § 37A-4-401 or N.C. Gen. Stat. § 37A-4-415 applies to a receipt from the trust. (2003-232, s. 2.)