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2017 Tennessee Code
Title 35 - Fiduciaries and Trust Estates
Chapter 6 - Uniform Principal and Income Act
Part 4 - Allocation of Receipts During Administration of Trust
C. Receipts Normally Apportioned
§ 35-6-408. Insubstantial allocations not required.
Universal Citation: TN Code § 35-6-408 (2017)
- If a trustee determines that an allocation between principal and income required by § 35-6-409, § 35-6-410, § 35-6-411, § 35-6-412, or § 35-6-415 is insubstantial, the trustee may allocate the entire amount to principal unless one (1) of the circumstances described in § 35-6-104(c) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in § 35-6-104(d) and may be released for the reasons and in the manner described in § 35-6-104(e). An allocation is presumed to be insubstantial if:
- (1) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten percent (10%); or
- (2) The value of the asset producing the receipt for which the allocation would be made is less than ten percent (10%) of the total value of the trust's assets at the beginning of the accounting period.
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