New Mexico § 46-3A-302 - Apportionment of receipts and disbursements when decedent dies or income interest begins

§ 46-3A-302. Apportionment of receipts and disbursements when decedent dies or income interest begins

(a) A trustee shall allocate an income receipt or disbursement other than one to which

Section 201(1) applies to principal if its due date occurs before a decedent dies

in the case of an estate or before an income interest begins in the case of a trust

or successive income interest. (b) A trustee shall allocate an income receipt or disbursement to income if its due

date occurs on or after the date on which a decedent dies or an income interest begins

and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if

its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent

dies or an income interest begins must be allocated to principal and the balance must

be allocated to income. (c) An item of income or an obligation is due on the date the payer is required to

make a payment. If a payment date is not stated, there is no due date for the purposes of the Uniform

Principal and Income Act. Distributions to shareholders or other owners from an entity to which Section 401

applies are deemed to be due on the date fixed by the entity for determining who is

entitled to receive the distribution or, if no date is fixed, on the declaration date

for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular

intervals under a lease or an obligation to pay interest or if an entity customarily

makes distributions at regular intervals.