N.Y. Estates, Powers & Trusts Law § 11-a-4.8: Insubstantial allocations not required

§ 11-A-4.8 Insubstantial allocations not required

If a trustee determines that an allocation between principal and

income required by 11-A-4.9, 11-A-4.10, 11-A-4.11, 11-A-4.12, or

11-A-4.15 is insubstantial, the trustee may allocate the entire amount

to principal unless one of the circumstances described in subparagraph

11-2.3 (b)(5) applies to the allocation. This power may be exercised by

a cotrustee in the circumstances described in subparagraph 11-2.3 (b)(5)

and may be released for the reasons and in the manner described in that

section. An allocation is presumed to be insubstantial if:

(1) the amount of the allocation would increase or decrease net income

in an accounting period, as determined before the allocation, by less

than ten percent; or

(2) the value of the asset producing the receipt for which the

allocation would be made is less than ten percent of the total value of

the trust's assets at the beginning of the accounting period.