§ 37A‑4‑402.  Distribution from trust or estate.

A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest and shall allocate to principal an amount received as a distribution of principal from the trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in a trust to a trustee, G.S. 37A‑4‑401 or G.S. 37A‑4‑415 applies to a receipt from the trust. (2003‑232, s. 2.)