Principal and Income Law Flashcards
1
Q
Examples of Income Credits
A
Rental Income
Interest Earned
Cash Dividends from Stocks
Business income
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
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
4
Q
Examples of Principal Debits
A
Portions of fees and expenses
Fees for purchase/sale of asset
Captain gain taxes
5
Q
Order of source of principal and income definition
A
1) Document/agreement
2) State Law
3) Judicial Interpretation
6
Q
Sustainable Unitrust Payout Percentages
A
Highest Confidence Interval: 3-5%