A fiduciary shall allocate to principal:

1. (a) To the extent not allocated to income under this act, an asset received from:

   1. (1) An individual during the individual's lifetime;
   2. (2) an estate;
   3. (3) a trust on termination of an income interest; or
   4. (4) a payor under a contract naming the fiduciary as beneficiary;
2. (b) except as otherwise provided in K.S.A. 58-9a-401 through 58-9a-416, and amendments thereto, money or other property received from the sale, exchange, liquidation or change in form of a principal asset;
3. (c) an amount recovered from a third party to reimburse the fiduciary because of a disbursement described in K.S.A. 58-9a-502(a), and amendments thereto, or for another reason to the extent not based on loss of income;
4. (d) proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period;
5. (e) net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and
6. (f) other receipts as provided in K.S.A. 58-9a-408 through 58-9a-416, and amendments thereto.

L. 2021, ch. 63, § 20; July 1.