N.Y. Estates, Powers & Trusts Law § 11-a-4.5: Rental property

§ 11-A-4.5 Rental property

To the extent that a trustee accounts for receipts from rental

property pursuant to this section, the trustee shall allocate to income

an amount received as rent of real or personal property, including an

amount received for cancellation or renewal of a lease. An amount

received as a refundable deposit, including a security deposit or a

deposit that is to be applied as rent for future periods, must be added

to principal and held subject to the terms of the lease and is not

available for distribution to a beneficiary until the trustee's

contractual obligations have been satisfied with respect to that amount.