Texas Property Code

§ 116.151 — CHARACTER OF RECEIPTS

PR § 116.151Title 9. TRUSTS · Part B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS · Ch. 116. UNIFORM PRINCIPAL AND INCOME ACT · Art. D. ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST

Statute text

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(a)In this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which Section 116.152 applies, a business or activity to which Section 116.153 applies, or an asset-backed security to which Section 116.178 applies.

(b)Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.

(c)A trustee shall allocate the following receipts from an entity to principal:

(1)property other than money;

(2)money received in one distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;

(3)money received in total or partial liquidation of the entity; and

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Legislative history

Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.