(a) To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee 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.
(b) 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 trustee’s contractual obligations have been satisfied with respect to that amount.
Structure Maryland Statutes
Subtitle 5 - Maryland Uniform Principal and Income Act
Part IV - Allocation of Receipts During Administration of Trust
Section 15-508 - Character of Receipts
Section 15-509 - Distribution From Trust or Estate
Section 15-510 - Separate Accounting Methods in Business and Other Activities Conducted by Trustee
Section 15-511 - Principal Receipts
Section 15-512 - Rental Property
Section 15-513 - Obligation to Pay Money
Section 15-514 - Insurance Policies and Similar Contracts
Section 15-515 - Insubstantial Allocations Not Required
Section 15-516 - Deferred Compensation, Annuities, and Similar Payments
Section 15-517 - Liquidating Asset
Section 15-518 - Minerals, Water, and Other Natural Resources
Section 15-520 - Property Not Productive of Income