{"data":{"id":"us-mi/mich.-comp.-laws-555.811","jurisdiction":"us-mi","citation":"Mich. Comp. Laws § 555.811","heading":"Receipts from minerals, water, or other natural resources; allocations.","body":"Sec. 411.\n\nExcept as provided in subsection (4), to the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:\n\nIf received as nominal delay rental or nominal annual rent on a lease, a receipt must be allocated to income.\n\nIf received from a production payment, a receipt must be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal.\n\nIf an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, 90% must be allocated to principal and the balance to income.\n\nIf an amount is received from a working interest or any other interest not provided for in subdivision (a), (b), or (c), 90% of the net amount received must be allocated to principal and the balance to income.\n\nExcept as provided in subsection (4), a trustee shall allocate to income an amount received on account of an interest in water that is renewable. If the interest in water is not renewable, the trustee shall allocate 90% of the amount to principal and the balance to income.\n\nThis act applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.\n\nIf a trust owns an interest in minerals, water, or other natural resources on the effective date of this act, the trustee may allocate receipts from the interest as provided in this act or in the manner used by the trustee before the effective date of this act. If the trust acquires an interest in minerals, water, or other natural resources after the effective date of this act, the trustee shall allocate receipts from the interest as provided in this act.","path":["MI Code","Chapter 555","Act Act-159-of-2004"],"source_url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-555-811","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:31Z","sha256":"91c0cb7bdc10bd13a25db40640d56b9bda6e117f21d92e460fba33b17e55c93a","source_id":"us-mi","stale":false,"prev":"us-mi/mich.-comp.-laws-555.810","next":"us-mi/mich.-comp.-laws-555.812"},"notice":"GroundRules: Original legal text. Not legal advice."}