Section 28-77-404 - Principal receiptsA fiduciary shall allocate to principal:
(1) to the extent not allocated to income under this chapter, an asset received from: (A) an individual during the individual's lifetime;(C) a trust on termination of an income interest; or(D) a payor under a contract naming the fiduciary as beneficiary;(2) except as otherwise provided in this subchapter, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset;(3) an amount recovered from a third party to reimburse the fiduciary because of a disbursement described in § 28-77-502(a) or for another reason to the extent not based on loss of income;(4) proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period;(5) net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and(6) other receipts as provided in Part 3.Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.