1999 Florida Code
TITLE XLII ESTATES AND TRUSTS
Chapter 738 Principal and Income  
738.04   When right to income arises; apportionment of income.

738.04  When right to income arises; apportionment of income.--

(1)  An income beneficiary is entitled to income from the date specified in the trust instrument or, if none is specified, from the date an asset becomes subject to the trust. In the case of an asset becoming subject to a trust by reason of a will, it becomes subject to the trust at the date of the death of the testator even though there is an intervening period of administration of the testator's estate.

(2)  In the administration of a decedent's estate or upon an asset becoming subject to a trust by reason of a will:

(a)  Receipts due but not paid at the date of death of the testator are principal.

(b)  Receipts in the form of periodic payments, including rent, interest, or annuities, except as provided in paragraph (c) and other than corporate distributions to stockholders, distributions from mutual funds, and dividends from savings banks and savings and loan associations, not due at the date of the death of the testator shall be treated as accruing from day to day. That part of the receipt accruing before the date of death is principal and the balance is income.

(c)  Anything contained in this subsection to the contrary notwithstanding, proceeds from a qualified pension or profit-sharing plan, including, but not limited to, corporate plans, partnership and individual self-employment retirement plans, and individual retirement accounts, as those terms are used in the Internal Revenue Code of the United States as from time to time amended, which are received or paid in installments or annuity payments shall be principal, except to the extent of interest or other income earned on such proceeds after the death of the testator.

(3)  In all other cases, any receipt from an income-producing asset is income even though the receipt was earned or accrued in whole or in part before the date when the asset became subject to the trust.

(4)  On termination of an income interest, the income beneficiary whose interest is terminated, or his or her estate, is entitled to:

(a)  Income undistributed on the date of termination.

(b)  Income due but not paid to the trustee on the date of termination.

(c)  Income in the form of periodic payments, including rent, interest, or annuities, other than corporate distributions to stockholders, distributions from mutual funds, and dividends from savings banks and savings and loan associations, not due on the date of termination, accrued from day to day.

(5)  Corporate distributions to stockholders, distributions from mutual funds, and dividends from savings banks and savings and loan associations shall be treated as due on the day fixed by the corporation for determination of stockholders of record entitled to distribution or, if no date is fixed, on the date of declaration of the distribution by the corporation.

History.--s. 1, ch. 74-106; s. 14, ch. 75-221; s. 1, ch. 77-254; s. 276, ch. 79-400; s. 1052, ch. 97-102.

Note.--Created from former s. 690.05.