501B.61 INCOME; PRINCIPAL; CHARGES.
Subdivision 1. Income defined.
"Income" means the return in money or property derived
from the use of principal, including return received as:
(1) rent of real or personal property, including sums received for cancellation or renewal
of a lease;
(2) interest on money lent, including sums received as consideration for the privilege of
prepayment of principal, except as provided in section
on bond premium and bond
(3) income earned during administration of a decedent's estate as provided in section
(4) corporate distributions as provided in section
(5) accrued increment on bonds or other obligations issued at discount as provided in section
(6) receipts from business and farming operations as provided in section
(7) receipts from disposition of natural resources as provided in sections
(8) receipts from other principal subject to depletion as provided in section
Subd. 2. Principal defined.
"Principal" means the property set aside by the owner or the
person legally empowered so that it is held in trust eventually to be delivered to a remainderperson
while the return or use of the principal is in the meantime taken or received by or held for
accumulation for an income beneficiary. Principal includes:
(1) consideration received by the trustee on the sale or other transfer of principal, on
repayment of a loan, or as a refund, replacement, or change in the form of principal;
(2) proceeds of property taken on eminent domain proceedings;
(3) proceeds of insurance on property forming part of the principal, except proceeds of
insurance on a separate interest of an income beneficiary;
(4) stock dividends, receipts on liquidation of a corporation, and other corporate distributions
as provided in section
(5) receipts from the disposition of corporate securities as provided in section
(6) royalties and other receipts from disposition of natural resources as provided in sections
(7) receipts from other principal subject to depletion as provided in section
(8) profit resulting from a change in the form of principal;
(9) allowances for depreciation established under sections
, clause (2); and
(10) gain or loss, including the purchase premium, if any, from the grant of an option to buy
or sell property of the trust, whether or not the trust owns the property when the option is granted.
Subd. 3. Charges.
After determining income and principal in accordance with the terms
of the trust instrument or of sections
, the trustee shall charge to income or
principal expenses and other charges as provided in section
History: 1989 c 340 art 1 s 50; 1990 c 426 art 1 s 52; 2001 c 15 s 4; 2002 c 379 art 1 s 98