A trustee shall allocate to principal:

1. (1) to the extent not allocated to income pursuant to this part, assets received from a transferor during his lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;
2. (2) money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit;
3. (3) amounts recovered from third parties to reimburse the trust because of disbursements described in Section 62-7-926(A)(7) or for other reasons to the extent not based on the loss of income;
4. (4) proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;
5. (5) net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and
6. (6) other receipts as provided in Sections 62-7-917 through 62-7-924.

HISTORY: 2005 Act No. 66, SECTION 1; 2013 Act No. 100, SECTION 2, eff January 1, 2014.