N.Y. Estates, Powers & Trusts Law § 11-a-4.12: Timber

§ 11-A-4.12 Timber

(a) To the extent that a trustee accounts for receipts from the sale

of timber and related products pursuant to this section, the trustee

shall allocate the net receipts:

(1) to income to the extent that the amount of timber removed from the

land does not exceed the rate of growth of the timber during the

accounting periods in which a beneficiary has a mandatory income

interest;

(2) to principal to the extent that the amount of timber removed from

the land exceeds the rate of growth of the timber or the net receipts

are from the sale of standing timber;

(3) to or between income and principal if the net receipts are from

the lease of timberland or from a contract to cut timber from land owned

by a trust, by determining the amount of timber removed from the land

under the lease or contract and applying the rules in subparagraphs (1)

and (2); or

(4) to principal to the extent that advance payments, bonuses, and

other payments are not allocated pursuant to subparagraph (1), (2), or

(3).

(b) In determining net receipts to be allocated pursuant to paragraph

(a), a trustee shall deduct and transfer to principal a reasonable

amount for depletion.

(c) This article applies whether or not a decedent or transferor was

harvesting timber from the property before it became subject to the

trust.

(d) If a trust owns an interest in timberland on the effective date of

this article, the trustee may allocate net receipts from the sale of

timber and related products as provided in this article or in the manner

used by the trustee before the effective date of this article. If the

trust acquires an interest in timberland after the effective date of

this article, the trustee shall allocate net receipts from the sale of

timber and related products as provided in this article.