2006 New York Code - Apportionment when income interest ends

 
  § 11-A-3.3 Apportionment when income interest ends
    (a)  In this section, "undistributed income" means net income received
  before the date on which an income interest  ends.  The  term  does  not
  include  an  item  of  income  or  expense that is due or accrued or net
  income that has been added or is required to be added to principal under
  the terms of the trust.
    (b) When a mandatory income interest ends, the trustee shall pay to  a
  mandatory  income beneficiary who survives that date, or the estate of a
  deceased mandatory income beneficiary whose death causes the interest to
  end, the beneficiary's share of the undistributed  income  that  is  not
  disposed  of  under the terms of the trust unless the beneficiary has an
  unqualified power  to  revoke  more  than  five  percent  of  the  trust
  immediately  before  the  income  interest ends. In the latter case, the
  undistributed income from the portion of the trust that may  be  revoked
  must be added to principal.
    (c)  When  a  trustee's  obligation  to pay a fixed annuity or a fixed
  fraction of the value of the trust's  assets  ends,  the  trustee  shall
  prorate  the  final  payment if and to the extent required by applicable
  law to accomplish a purpose of the trust  or  its  settlor  relating  to
  income, gift, estate, or other tax requirements.