{"data":{"id":"us-nc/n.c.-gen.-stat.-37a-4-408","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 37A-4-408","heading":"Insubstantial allocations not required.","body":"If a trustee determines that an allocation between principal and income required by G.S. 37A-4-409, 37A-4-410, 37A-4-411, 37A-4-412, or 37A-4-415 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in G.S. 37A-1-104(c) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in G.S. 37A-1-104(d) and may be released for the reasons and in the manner described in G.S. 37A-1-104(e). An allocation is presumed to be insubstantial if:\n(1)\tThe amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten percent (10%); or\n(2)\tThe value of the asset producing the receipt for which the allocation would be made is less than ten percent (10%) of the total value of the trust's assets at the beginning of the accounting period. (2003-232, s. 2.)","path":["Chapter 37A. Uniform Principal and Income Act.","Article 4. Allocation of Receipts During Administration of Trust.","Part 3. Receipts Normally Apportioned."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_37A/GS_37A-4-408.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:01:42Z","sha256":"df87e65e118140036f34006762e0294a9bf7bafb6238a7363d8b55dcc82c7d99","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-37a-4-407","next":"us-nc/n.c.-gen.-stat.-37a-4-409"},"notice":"GroundRules: Original legal text. Not legal advice."}