GroundRules
Ark. Code Ann. § 28-70-410: Liquidating asset.
Where this section sits in the code
- Title 28 Wills, Estates, and Fiduciary Relationships
- Subtitle 5. Fiduciary Relationships
- Chapter 70 Uniform Principal And Income Act
- Subchapter 4 — Allocation of Receipts During Administration of Trust
- Part 3 — Receipts Normally Apportioned
(a) In this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to § 28-70-409, resources subject to § 28-70-411, timber subject to § 28-70-412, an activity subject to § 28-70-414, an asset subject to § 28-70-415, or any asset for which the trustee establishes a reserve for depreciation under § 28-70-503.
(b) A trustee shall allocate to income 10 percent of the receipts from a liquidating asset and the balance to principal.
Collected 2026-09-17T21:09:03Z. Source file · JSON