Legislation
SECTION 11-A-4.10
Liquidating asset
Estates, Powers & Trusts (EPT) CHAPTER 17-B, ARTICLE 11-A, PART 4, SUBPART 3
§ 11-A-4.10 Liquidating asset
(a) In this section, "liquidating asset" means an asset whose value
will diminish or terminate because the asset is expected to produce
receipts for a period of limited duration. The term includes a
leasehold, patent, copyright, royalty right, and right to receive
payments during a period of more than one year under an arrangement that
does not provide for the payment of interest on the unpaid balance. The
term does not include a payment subject to 11-A-4.9, resources subject
to 11-A-4.11, timber subject to 11-A-4.12, an activity subject to
11-A-4.14, an asset subject to 11-A-4.15, or any asset for which the
trustee establishes a reserve for depreciation under 11-A-5.3.
(b) A trustee shall allocate to income ten percent of the receipts
from a liquidating asset and the balance to principal.
(a) In this section, "liquidating asset" means an asset whose value
will diminish or terminate because the asset is expected to produce
receipts for a period of limited duration. The term includes a
leasehold, patent, copyright, royalty right, and right to receive
payments during a period of more than one year under an arrangement that
does not provide for the payment of interest on the unpaid balance. The
term does not include a payment subject to 11-A-4.9, resources subject
to 11-A-4.11, timber subject to 11-A-4.12, an activity subject to
11-A-4.14, an asset subject to 11-A-4.15, or any asset for which the
trustee establishes a reserve for depreciation under 11-A-5.3.
(b) A trustee shall allocate to income ten percent of the receipts
from a liquidating asset and the balance to principal.