(a) Accrual of income interest.--An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins:
(1) on the date specified in the governing instrument; or
(2) if no date is specified, on the date an asset becomes subject to a trust or successive income interest.
(b) Asset subject to a trust.--An asset becomes subject to a trust:
(1) on the date it is transferred to the trust in the case of an asset which is transferred to a trust during the transferor's life;
(2) on the date of a testator's death in the case of an asset which becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or
(3) on the date of an individual's death in the case of an asset which is transferred to a fiduciary by a third party because of the individual's death.
(c) Asset subject to a successive income interest.--An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (d), even if there is an intervening period of administration to wind up the preceding income interest.
(d) End of income interest.--An income interest ends on:
(1) the day before an income beneficiary dies or another terminating event occurs; or
(2) the last day of a period during which there is no beneficiary to whom a trustee may distribute income.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 81 - Principal and Income
Section 8101 - Short title of chapter
Section 8103 - Fiduciary duties; general principles
Section 8104 - Trustee's power to adjust
Section 8105 - Power to convert to unitrust
Section 8106 - Judicial control of discretionary powers
Section 8113 - Charitable trusts
Section 8121 - Determination and distribution of net income
Section 8122 - Distribution to residuary and remainder beneficiaries
Section 8131 - When right to income begins and ends
Section 8133 - Apportionment when income interest ends
Section 8141 - Character of receipts
Section 8142 - Distribution from trust or estate
Section 8143 - Business and other activities conducted by trustee
Section 8144 - Principal receipts
Section 8145 - Rental property
Section 8146 - Obligation to pay money
Section 8147 - Insurance policies and similar contracts
Section 8148 - Insubstantial allocations not required
Section 8150 - Liquidating asset
Section 8151 - Minerals, water and other natural resources
Section 8153 - Property not productive of income
Section 8154 - Derivatives and options
Section 8155 - Asset-backed securities
Section 8161 - Mandatory disbursements from income
Section 8162 - Mandatory disbursements from principal
Section 8163 - Discretionary allocation of disbursements
Section 8164 - Transfers from income to principal for depreciation
Section 8165 - Transfers from income to reimburse principal
Section 8167 - Adjustments between principal and income because of taxes