K.S.A. 58-9a-404: Principal receipts.

A fiduciary shall allocate to principal:

(a) To the extent not allocated to income under this act, an asset received from:

(1) An individual during the individual's lifetime;

(2) an estate;

(3) a trust on termination of an income interest; or

(4) a payor under a contract naming the fiduciary as beneficiary;

(b) except as otherwise provided in K.S.A. 58-9a-401 through 58-9a-416, and amendments thereto, money or other property received from the sale, exchange, liquidation or change in form of a principal asset;

(c) an amount recovered from a third party to reimburse the fiduciary because of a disbursement described in K.S.A. 58-9a-502(a), and amendments thereto, or for another reason to the extent not based on loss of income;

(d) proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period;

(e) net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and

(f) other receipts as provided in K.S.A. 58-9a-408 through 58-9a-416, and amendments thereto.