Iowa Code 637.410 – Principal receipts
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Iowa Code 637.410
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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
- Contract: A legal written agreement that becomes binding when signed.
- Decedent: A deceased person.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- property: includes personal and real property. See Iowa Code 4.1
- Trustee: A person or institution holding and administering property in trust.
637.410 Principal receipts.
The following items must be allocated to principal:
1. To the extent not allocated to income under this chapter, assets received from any of the following sources:
a. A transferor during the transferor’s lifetime.
b. A decedent‘s estate.
c. A trust with a terminating income interest.
d. A payor pursuant to a contract naming the trust or its trustee as beneficiary.
2. Cash or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this subchapter.
3. Amounts recovered from third parties to reimburse the trust because of disbursements described in § 637.502, subsection 1, paragraph “”g””, or for other reasons to the extent not based on the loss of income.
4. Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income.
5. Net income received in a period during which there is no beneficiary to whom a trustee may or must distribute income.
6. Other receipts, as provided in part 3.
99 Acts, ch 124, §12
The following items must be allocated to principal:
1. To the extent not allocated to income under this chapter, assets received from any of the following sources:
a. A transferor during the transferor’s lifetime.
b. A decedent‘s estate.
c. A trust with a terminating income interest.
d. A payor pursuant to a contract naming the trust or its trustee as beneficiary.
2. Cash or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this subchapter.
3. Amounts recovered from third parties to reimburse the trust because of disbursements described in § 637.502, subsection 1, paragraph “”g””, or for other reasons to the extent not based on the loss of income.
4. Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income.
5. Net income received in a period during which there is no beneficiary to whom a trustee may or must distribute income.
6. Other receipts, as provided in part 3.
99 Acts, ch 124, §12