2013 Kentucky Revised Statutes CHAPTER 386 - ADMINISTRATION OF TRUSTS -- LEGAL INVESTMENTS -- UNIFORM PRINCIPAL AND INCOME ACT 386.458 Distribution to residuary and remainder beneficiaries.
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386.458 Distribution to residuary and remainder beneficiaries.
(1)
(2)
(3)
(4)
Each beneficiary described in KRS 386.456(4) is entitled to receive a portion of
the net income equal to the beneficiary's fractional interest in undistributed
principal assets, using values as of the distribution date. If a fiduciary makes
more than one (1) distribution of assets to beneficiaries to whom this section
applies, each beneficiary, including one (1) who shall not receive part of the
distribution, is entitled, as of each distribution date, to the net income the
fiduciary has received after the date of the death or terminating event or earlier
distribution date but has not distributed as of the current distribution date.
In determining a beneficiary's share of net income, the following rules apply:
(a) The beneficiary is entitled to receive a portion of the net income equal to
the beneficiary's fractional interest in the undistributed principal assets
immediately before the distribution date, including assets that later may
be sold to meet principal obligations.
(b) The beneficiary's fractional interest in the undistributed principal assets
shall be calculated without regard to property specifically given to a
beneficiary and property required to pay pecuniary amounts not in trust.
(c) The beneficiary's fractional interest in the undistributed principal assets
shall be calculated on the basis of the aggregate value of those assets as
of the distribution date without reducing the value by an unpaid principal
obligation.
(d) The distribution date for purposes of this section may be the date as of
which the fiduciary calculates the value of the assets if that date is
reasonably near the date on which assets are actually distributed.
If a fiduciary does not distribute all of the collected but undistributed net income
to each person as of a distribution date, the fiduciary shall maintain appropriate
records showing the interest of each beneficiary in that net income.
A fiduciary may apply the rules in this section, to the extent that the fiduciary
considers it appropriate, to net gain or loss realized after the date of death or
terminating event or earlier distribution date from the disposition of a principal
asset if this section applies to the income from the asset.
Effective:January 1, 2005
History: Created 2004 Ky. Acts ch. 158, sec. 5, effective January 1, 2005.
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