N.Y. Estates, Powers & Trusts Law § 11-a-4.4: Principal receipts

§ 11-A-4.4 Principal receipts

A trustee shall allocate to principal:

(1) to the extent not allocated to income under this article, 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 part;

(3) amounts recovered from third parties to reimburse the trust

because of disbursements described in subparagraph 11-A-5.2 (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 subpart 3.