Idaho State Statutes - Idaho Attorney Directory

(a) In
this section, "payment" means a payment that a trustee may receive over a
fixed number of years or during the life of one (1) or more individuals
because of services rendered or property transferred to the payer in exchange
for future payments. The term includes a payment made in money or property
from the payer's general assets or from a separate fund created by the payer,
including a private or commercial annuity, an individual retirement account,
and a pension, profit-sharing, stock-bonus or stock-ownership plan.
(b) To the extent that a payment is characterized as interest or a
dividend or a payment made in lieu of interest or a dividend, a trustee shall
allocate it to income. The trustee shall allocate to principal the balance of
the payment and any other payment received in the same accounting period that
is not characterized as interest, a dividend or an equivalent payment.
(c) If no part of a payment is characterized as interest, a dividend or
an equivalent payment, and all or part of the payment is required to be made,
a trustee shall allocate to income ten percent (10%) of the part that is
required to be made during the accounting period and the balance to principal.
If no part of a payment is required to be made or the payment received is the
entire amount to which the trustee is entitled, the trustee shall allocate the
entire payment to principal. For purposes of this subsection, a payment is not
"required to be made" to the extent that it is made because the trustee
exercises a right of withdrawal.
(d) If, to obtain an estate tax marital deduction for a trust, a trustee
must allocate more of a payment to income than provided for by this section,
the trustee shall allocate to income the additional amount necessary to obtain
the marital deduction.
(e) This section does not apply to payments to which section 68-10-410,
Idaho Code, applies.

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