N.Y. Estates, Powers & Trusts Law § 11-a-4.13: Property not productive of income

§ 11-A-4.13 Property not productive of income

(a) If a gift tax or estate tax marital deduction is allowed for all

or part of a trust whose assets consist substantially of property that

does not provide the spouse with sufficient income from or use of the

trust assets, and if the amounts that the trustee transfers from

principal to income under paragraph 11-2.3 (b)(5) and distributes to the

spouse from principal pursuant to the terms of the trust are

insufficient to provide the spouse with the beneficial enjoyment

required to obtain the marital deduction, the spouse may require the

trustee to make property productive of income, convert property within a

reasonable time, or exercise the power conferred by paragraph 11-2.3

(b)(5). The trustee may decide which action or combination of actions to

take.

(b) In cases not governed by paragraph (a), proceeds from the sale or

other disposition of an asset are principal without regard to the amount

of income the asset produces during any accounting period.