District of Columbia · Through 2026-08-20 (D.C. Law 26-175)

D.C. Code § 28-4804.04: Principal receipts.

A trustee shall allocate to principal:

(1)
To the extent not allocated to income under this chapter, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;

(2)
Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this subchapter;

(3)
Amounts recovered from third parties to reimburse the trust because of disbursements described in § 28-4805.02(a)(7) or for other reasons to the extent not based on the loss of income;

(4)
Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;

(5)
Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and

(6)
Other receipts as provided in part C of this subchapter.

Where this section sits in the code

Title 28. Commercial Instruments and Transactions. [Enacted title]
Chapter 48. Principal and Income; Uniform Law.
Subchapter IV. Allocation of Receipts During Administration of Trust.
Subpart 2. Receipts Not Normally Apportioned.

A trustee shall allocate to principal:

(1)

To the extent not allocated to income under this chapter, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;

(2)

Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this subchapter;

(3)

Amounts recovered from third parties to reimburse the trust because of disbursements described in § 28-4805.02(a)(7) or for other reasons to the extent not based on the loss of income;

(4)

Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;

(5)

Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and

(6)

Other receipts as provided in part C of this subchapter.

Collected 2026-08-29T05:44:07Z. Source file · JSON

Browse this collection