§ 11-A-4.12 Timber

(a) To the extent that a trustee accounts for receipts from the sale
of timber and related products pursuant to this section, the trustee
shall allocate the net receipts:

(1) to income to the extent that the amount of timber removed from the
land does not exceed the rate of growth of the timber during the
accounting periods in which a beneficiary has a mandatory income
interest;

(2) to principal to the extent that the amount of timber removed from
the land exceeds the rate of growth of the timber or the net receipts
are from the sale of standing timber;

(3) to or between income and principal if the net receipts are from
the lease of timberland or from a contract to cut timber from land owned
by a trust, by determining the amount of timber removed from the land
under the lease or contract and applying the rules in subparagraphs (1)
and (2); or

(4) to principal to the extent that advance payments, bonuses, and
other payments are not allocated pursuant to subparagraph (1), (2), or
(3).

(b) In determining net receipts to be allocated pursuant to paragraph
(a), a trustee shall deduct and transfer to principal a reasonable
amount for depletion.

(c) This article applies whether or not a decedent or transferor was
harvesting timber from the property before it became subject to the
trust.

(d) If a trust owns an interest in timberland on the effective date of
this article, the trustee may allocate net receipts from the sale of
timber and related products as provided in this article or in the manner
used by the trustee before the effective date of this article. If the
trust acquires an interest in timberland after the effective date of
this article, the trustee shall allocate net receipts from the sale of
timber and related products as provided in this article.