{"data":{"id":"us-ok/okla.-stat.-tit.-60-60-175.201","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 60, § 60-175.201","heading":"Determination and distribution of net income","body":"DETERMINATION AND DISTRIBUTION OF NET INCOME\n\nAfter a decedent dies, in the case of an estate, or after an\n\nincome interest in a trust ends, the following rules apply:\n\n1. A fiduciary of an estate or of a terminating income interest\n\nshall determine the amount of net income and net principal receipts\n\nreceived from property specifically given to a beneficiary under the\n\nrules in Articles 3 through 5 of this act which apply to trustees\n\nand the rules in paragraph 5 of this section. The fiduciary shall\n\ndistribute the net income and net principal receipts to the\n\nbeneficiary who is to receive the specific property;\n\n2. A fiduciary shall determine the remaining net income of a\n\ndecedent's estate or a terminating income interest under the rules\n\nin Articles 3 through 5 of this act which apply to trustees and by:\n\na. including in net income all income from property used\n\nto discharge liabilities,\n\nb. paying from income or principal, in the fiduciary's\n\ndiscretion, fees of attorneys, accountants, and\n\nfiduciaries; court costs and other expenses of\n\nadministration; and interest on death taxes, but the\n\nfiduciary may pay those expenses from income of\n\nproperty passing to a trust for which the fiduciary\n\nclaims an estate tax marital or charitable deduction\n\nonly to the extent that the payment of those expenses\n\nfrom income will not cause the reduction or loss of\n\nthe deduction, and\n\nc. paying from principal all other disbursements made or\n\nincurred in connection with the settlement of a\n\ndecedent's estate or the winding up of a terminating\n\nincome interest, including debts, funeral expenses,\n\ndisposition of remains, family allowances, and death\n\ntaxes and related penalties that are apportioned to\n\nthe estate or terminating income interest by the will,\n\nthe terms of the trust, or applicable law;\n\n3. A fiduciary shall distribute to a beneficiary who receives a\n\npecuniary amount outright the interest or any other amount provided\n\nby the will, the terms of the trust, or applicable law from net\n\nincome determined under paragraph 2 of this section or from\n\nprincipal to the extent that net income is insufficient. If a\n\nbeneficiary is to receive a pecuniary amount outright from a trust\n\nafter an income interest ends and no interest or other amount is\n\nprovided for by the terms of the trust or applicable law, the\n\nfiduciary shall distribute the interest or other amount to which the\n\nbeneficiary would be entitled under applicable law if the pecuniary\n\namount were required to be paid under a will;\n\n4. A fiduciary shall distribute the net income remaining after\n\ndistributions required by paragraph 3 of this section in the manner\n\ndescribed in Section 6 of this act to all other beneficiaries,\n\nincluding a beneficiary who receives a pecuniary amount in trust,\n\neven if the beneficiary holds an unqualified power to withdraw\n\nassets from the trust or other presently exercisable general power\n\nof appointment over the trust;\n\n5. A fiduciary may not reduce principal or income receipts from\n\nproperty described in paragraph 1 of this section because of a\n\npayment described in Section 25 or 26 of this act to the extent that\n\nthe will, the terms of the trust, or applicable law requires the\n\nfiduciary to make the payment from assets other than the property or\n\nto the extent that the fiduciary recovers or expects to recover the\n\npayment from a third party. The net income and principal receipts\n\nfrom the property are determined by including all of the amounts the\n\nfiduciary receives or pays with respect to the property, whether\n\nthose amounts accrued or became due before, on, or after the date of\n\na decedent's death or an income interest's terminating event, and by\n\nmaking a reasonable provision for amounts that the fiduciary\n\nbelieves the estate or terminating income interest may become\n\nobligated to pay after the property is distributed.","path":["OK Code","Title 60"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os60.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"91580d6feb0abe60cb3a1e5bef9bcc6395234136c561ba9eff2dfd4f8198e524","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-60-60-175.20","next":"us-ok/okla.-stat.-tit.-60-60-175.202"},"notice":"GroundRules: Original legal text. Not legal advice."}