Me. Stat. tit. 18-C § 7-448

Current through 131st (2023-2024) Legislature Chapter 684

Section 7-448 - Insubstantial allocations not required

If a trustee determines that an allocation between principal and income required by section 7-449, 7-450, 7-451, 7-452 or 7-455 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in section 7-404, subsection 3 applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in section 7-404, subsection 4 and may be released for the reasons and in the manner described in section 7-404, subsection 5. An allocation is presumed to be insubstantial if: [2017, c. 402, Pt. A, §2(NEW); 2019, c. 417, Pt. B, §14(AFF).]

1.Increase or decrease of less than 10%. The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10%; or

[2017, c. 402, Pt. A, §2(NEW); 2019, c. 417, Pt. B, §14(AFF).]

2.Value of asset less than 10%. The value of the asset producing the receipt for which the allocation would be made is less than 10% of the total value of the trust's assets at the beginning of the accounting period.

[2017, c. 402, Pt. A, §2(NEW); 2019, c. 417, Pt. B, §14(AFF).]

18-C M.R.S. § 7-448

Amended by 2019, c. 417,§ B-14, eff. 6/20/2019.

Added by 2018, c. 402,§ A-2, eff. 7/1/2019.