§7-448. Insubstantial allocations not required
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/me/title-18-c-probate-code/7-448A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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: [PL 2017, c. 402, Pt. A, §2 (NEW); PL 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
[PL 2017, c. 402, Pt. A, §2 (NEW); PL 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.
[PL 2017, c. 402, Pt. A, §2 (NEW); PL 2019, c. 417, Pt. B, §14 (AFF).]