2000 Minnesota Statutes

     501B.63 Income earned during administration of a 
  decedent's estate. 

    Subdivision 1.    Expenses.  Unless a will provides 
 otherwise and subject to subdivision 2, all expenses incurred in 
 connection with the settlement of a decedent's estate, including 
 debts, funeral expenses, estate taxes, interest and penalties 
 concerning taxes, family allowances, fees of attorneys and 
 personal representatives, and court costs must be charged 
 against the principal of the estate. 

    Subd. 2.    Income.  Unless the will provides otherwise, 
 income from the assets of a decedent's estate after the death of 
 the testator and before distribution, including income from 
 property used to discharge liabilities, must be determined in 
 accordance with the rules applicable to a trustee and 
 distributed as follows: 

    (1) to specific devisees, the income from the property 
 devised to them respectively, less property taxes, ordinary 
 repairs, interest, and other expenses of management and 
 operation of the property, and less an appropriate portion of 
 taxes imposed on income, excluding taxes on capital gains, that 
 accrue during the period of administration; 

    (2) to all other devisees, except devisees of pecuniary 
 devises not in trust, the balance of the income, less the 
 balance of property taxes, ordinary repairs, interest, and other 
 expenses of management and operation of all property from which 
 the estate is entitled to income, and taxes imposed on income, 
 excluding taxes on capital gains, that accrue during the period 
 of administration, in proportion to their respective interests 
 in the undistributed assets of the estate computed at times of 
 distribution on the basis of inventory value. 

    Subd. 3.    Income received by trustee.  Income received 
 by a trustee under subdivision 2 must be treated as income of 
 the trust. 

    HIST: 1989 c 340 art 1 s 52