Sec. 405.
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. 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.
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.