Sec. 1107. Allocations.
147 words·~1 min read·
/il/chapter-760/act-3/1107A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 1107. Allocations.
(a)Expenses, taxes, and other charges that would be deducted from income if the trust were not a total return trust shall not be deducted from the distribution amount.
(b)Unless otherwise provided by the trust instrument, the trustee shall fund the distribution amount each year from the following sources for that year in the order listed:
(1)first from net income (as the term would be determined if the trust were not a
total return trust);
(2)then from other ordinary income as determined for federal income tax purposes;
(3)then from net realized short-term capital gains as determined for federal income
tax purposes;
(4)then from net realized long-term capital gains as determined for federal income tax
purposes;
(5)then from trust principal comprised of assets for which there is a readily
available market value; and
(6)then from other trust principal.