Oklahoma § 60-175.412

§ 60-175.412.

Timber.

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 estimated 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 estimated 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

paragraphs 1 and 2 of this subsection; or

Oklahoma Statutes - Title 60. Property

4. To principal to the extent that advance payments, bonuses,

and other payments are not allocated pursuant to paragraph 1, 2, or

3 of this subsection.

B. In determining net receipts to be allocated pursuant to

subsection A of this section, a trustee may deduct and transfer to

principal a reasonable amount for depletion.

C. This act 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 exists on the effective date of this act, the

trustee may allocate receipts from an interest in timber as provided

in this act or in the manner used by the trustee before the

effective date of this act. For every trust created after the

effective date of this act, the trustee shall allocate receipts from

an interest in timber as provided in this act. If and to the extent

that the terms of a trust expressly provide for a different

allocation of receipts or grants the trustee discretionary authority

to determine the amount of the allocation, this act shall not apply

to those receipts.

Added by Laws 1998, c. 115, § 21, eff. Nov. 1, 1998. Amended by

Laws 1999, c. 419, § 3, emerg. eff. June 10, 1999.