To the extent the fiduciary does not account for receipts from rental property pursuant to Section 19-3A-403, the fiduciary shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, shall be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the fiduciary's contractual obligations have been satisfied with respect to that amount.
Structure Code of Alabama
Title 19 - Fiduciaries and Trusts.
Chapter 3A - Alabama Principal and Income Act.
Article 4 - Allocation of Receipts During Administration.
Section 19-3A-401 - Character of Receipts.
Section 19-3A-402 - Distributions From Trust or Decedent's Estate.
Section 19-3A-403 - Business and Other Activities Conducted by Fiduciary.
Section 19-3A-404 - Principal Receipts.
Section 19-3A-405 - Rental Property.
Section 19-3A-406 - Bonds and Other Obligations.
Section 19-3A-407 - Insurance Policies and Similar Contracts.
Section 19-3A-408 - Insubstantial Allocations Not Required.
Section 19-3A-409 - Deferred Compensation, Annuities, and Similar Payments.
Section 19-3A-410 - Liquidating Assets.
Section 19-3A-411 - Minerals, Water, and Other Natural Resources.
Section 19-3A-413 - Property Not Productive of Income.