Oklahoma § 60-175.201

§ 60-175.201.

Determination and distribution of net income.

DETERMINATION AND DISTRIBUTION OF NET INCOME

After a decedent dies, in the case of an estate, or after an

income interest in a trust ends, the following rules apply:

1. A fiduciary of an estate or of a terminating income interest

shall determine the amount of net income and net principal receipts

received from property specifically given to a beneficiary under the

rules in Articles 3 through 5 of this act which apply to trustees

and the rules in paragraph 5 of this section. The fiduciary shall

distribute the net income and net principal receipts to the

beneficiary who is to receive the specific property;

2. A fiduciary shall determine the remaining net income of a

decedent's estate or a terminating income interest under the rules

in Articles 3 through 5 of this act which apply to trustees and by:

a.

including in net income all income from property used

to discharge liabilities,

b.

paying from income or principal, in the fiduciary's

discretion, fees of attorneys, accountants, and

fiduciaries; court costs and other expenses of

administration; and interest on death taxes, but the

fiduciary may pay those expenses from income of

property passing to a trust for which the fiduciary

claims an estate tax marital or charitable deduction

only to the extent that the payment of those expenses

Oklahoma Statutes - Title 60. Property

from income will not cause the reduction or loss of

the deduction, and

c.

paying from principal all other disbursements made or

incurred in connection with the settlement of a

decedent's estate or the winding up of a terminating

income interest, including debts, funeral expenses,

disposition of remains, family allowances, and death

taxes and related penalties that are apportioned to

the estate or terminating income interest by the will,

the terms of the trust, or applicable law;

3. A fiduciary shall distribute to a beneficiary who receives a

pecuniary amount outright the interest or any other amount provided

by the will, the terms of the trust, or applicable law from net

income determined under paragraph 2 of this section or from

principal to the extent that net income is insufficient. If a

beneficiary is to receive a pecuniary amount outright from a trust

after an income interest ends and no interest or other amount is

provided for by the terms of the trust or applicable law, the

fiduciary shall distribute the interest or other amount to which the

beneficiary would be entitled under applicable law if the pecuniary

amount were required to be paid under a will;

4. A fiduciary shall distribute the net income remaining after

distributions required by paragraph 3 of this section in the manner

described in Section 6 of this act to all other beneficiaries,

including a beneficiary who receives a pecuniary amount in trust,

even if the beneficiary holds an unqualified power to withdraw

assets from the trust or other presently exercisable general power

of appointment over the trust;

5. A fiduciary may not reduce principal or income receipts from

property described in paragraph 1 of this section because of a

payment described in Section 25 or 26 of this act to the extent that

the will, the terms of the trust, or applicable law requires the

fiduciary to make the payment from assets other than the property or

to the extent that the fiduciary recovers or expects to recover the

payment from a third party. The net income and principal receipts

from the property are determined by including all of the amounts the

fiduciary receives or pays with respect to the property, whether

those amounts accrued or became due before, on, or after the date of

a decedent's death or an income interest's terminating event, and by

making a reasonable provision for amounts that the fiduciary

believes the estate or terminating income interest may become

obligated to pay after the property is distributed.

Added by Laws 1998, c. 115, § 5, eff. Nov. 1, 1998.