2010 Maine Code
TITLE 18-A: PROBATE CODE
Article 7: TRUST ADMINISTRATION
18-A §7-749. Deferred compensation, annuities and similar payments

Part 7: UNIFORM PRINCIPAL AND INCOME ACT OF 1997 HEADING: PL 2001, C. 544, §2 (NEW)

Subpart 4: ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST HEADING: PL 2001, C. 544, §2 (NEW)

§7-749. Deferred compensation, annuities and similar payments

(a). In this section, "payment" means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payor in exchange for future payments. The term includes a payment made in money or property from the payor's general assets or from a separate fund created by the payor, including a private or commercial annuity, an individual retirement account and a pension, profit-sharing, stock-bonus or stock-ownership plan.

[ 2001, c. 544, §2 (NEW) .]

(b). To the extent that a payment is characterized as interest or a dividend or a payment made in lieu of interest or a dividend, a trustee shall allocate it to income. The trustee shall allocate to principal the balance of the payment and any other payment received in the same accounting period that is not characterized as interest, a dividend or an equivalent payment.

[ 2001, c. 544, §2 (NEW) .]

(c). If no part of a payment is characterized as interest, a dividend or an equivalent payment, and all or part of the payment is required to be made, a trustee shall allocate to income 10% of the part that is required to be made during the accounting period and the balance to principal. If no part of a payment is required to be made or the payment received is the entire amount to which the trustee is entitled, the trustee shall allocate the entire payment to principal. For purposes of this subsection, a payment is not "required to be made" to the extent that it is made because the trustee exercises a right of withdrawal.

[ 2001, c. 544, §2 (NEW) .]

(d). If, to obtain an estate tax marital deduction for a trust, a trustee must allocate more of a payment to income than provided for by this section, the trustee shall allocate to income the additional amount necessary to obtain the marital deduction.

[ 2001, c. 544, §2 (NEW) .]

(e). This section does not apply to payments to which section 7-750 applies.

[ 2001, c. 544, §2 (NEW) .]

SECTION HISTORY

2001, c. 544, §2 (NEW).