(a) (1) If a trustee determines that an allocation between principal and income required by § 15-516, § 15-517, § 15-518, § 15-519, or § 15-522 of this subtitle is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in § 15-502.2(d) of this subtitle applies to the allocation.
(2) This power may be exercised by a cotrustee in the circumstances described in § 15-502.2(e) of this subtitle, and may be released for the reasons and in the manner described in § 15-502.2(f) of this subtitle.
(b) 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 10 percent; or
(2) The value of the asset producing the receipt for which the allocation would be made is less than 10 percent of the total value of the trust’s assets at the beginning of the accounting period.
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