2007 Minnesota Statutes

501B.62 WHEN RIGHT TO INCOME ARISES; APPORTIONMENT OF INCOME.
    Subdivision 1. General rule. An income beneficiary is entitled to income from the date
specified in the trust instrument or, if none is specified, from the date an asset becomes subject to
the trust. In the case of an asset that becomes subject to a trust because of the death of any person,
it becomes subject to the trust as of the date of the death of the person or, if later, the date the
estate or trust becomes entitled to the asset if acquired after the death of the person, even though
there is an intervening period of administration of an estate or trust during which the beneficiary
may have no right to a distribution of the income.
    Subd. 2. Receipts due but not paid; periodic payments. In the administration of a
decedent's estate or an asset that becomes subject to a trust by reason of a will:
(1) receipts due but not paid at the date of death of the testator are principal;
(2) receipts in the form of periodic payments, other than corporate distributions to
stockholders, including rent, interest, or annuities, not due at the date of the death of the testator
must be treated as accruing from day to day. That portion of the receipt that accrues before the
date of death is principal, and the balance is income.
    Subd. 3. Other receipts. In all other cases, any receipt from an income-producing asset is
income even though the receipt was earned or accrued in whole or in part before the date when
the asset became subject to the trust.
    Subd. 4. Termination of income interest. On termination of an income interest, the income
beneficiary whose interest is terminated, or the income beneficiary's estate, is entitled to:
(1) income undistributed on the date of termination;
(2) income due but not paid to the trustee on the date of termination; and
(3) income in the form of periodic payments, other than corporate distributions to
stockholders, including rent, interest, or annuities, not due on the date of termination, accrued
from day to day.
    Subd. 5. Corporate distributions to stockholders. Corporate distributions to stockholders
must be treated as due on the day fixed by the corporation for determination of stockholders of
record entitled to distribution or, if no date is fixed, on the date of declaration of the distribution
by the corporation.
History: 1989 c 340 art 1 s 51; 2001 c 15 s 5