Sec. 402.
A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, section 401 or 415 applies to a receipt from the trust.
History: 2004, Act 159, Eff. Sept. 1, 2004
Structure Michigan Compiled Laws
Act 159 of 2004 - Uniform Principal and Income Act (555.501 - 555.1006)
Article 4 - (555.801...555.815)
Section 555.803 - Separate Accounting for Business or Other Activity.
Section 555.804 - Principal; Allocations.
Section 555.805 - Receipts From Rental Property.
Section 555.807 - Life Insurance Proceeds; Other Contracts; Allocations.
Section 555.808 - Insubstantial Allocation.
Section 555.809 - Definitions; Payment Allocation.
Section 555.810 - Liquidating Asset; Allocation of Receipts.
Section 555.811 - Receipts From Minerals, Water, or Other Natural Resources; Allocations.
Section 555.812 - Net Receipts From Sale of Timber; Allocations.
Section 555.815 - Asset-Backed Security; Allocation of Payments.