(a) Allocation to principal.--Unless section 8121(1) (relating to determination and distribution of net income) applies, a trustee shall allocate an income receipt or disbursement to principal if its due date occurs before:
(1) a decedent dies in the case of an estate; or
(2) an income interest begins in the case of a trust or successive income interest.
(b) Allocation to income.--A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins must be allocated to principal and the balance must be allocated to income.
(c) Due dates.--An item of income or an obligation is due on the date the payor is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this chapter. Distributions to shareholders or other owners from an entity to which section 8141 (relating to character of receipts) applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.
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