Principal and Income Law Flashcards

1
Q

Examples of Income Credits

A

Rental Income
Interest Earned
Cash Dividends from Stocks
Business income

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2
Q

Examples of Income Charges

A

Income taxes due on trust income
Ordinary repairs or maintenance of trust property
Portion of fees and expenses

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3
Q

Examples of Principal Credits

A

Capital Gains
Insurance proceeds
Stock dividends
Sales proceeds-cash resulting from sale of a principal asset
Proceeds from eminent domain seizure

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4
Q

Examples of Principal Debits

A

Portions of fees and expenses
Fees for purchase/sale of asset
Captain gain taxes

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5
Q

Order of source of principal and income definition

A

1) Document/agreement
2) State Law
3) Judicial Interpretation

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6
Q

Sustainable Unitrust Payout Percentages

A

Highest Confidence Interval: 3-5%

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