Principal receipts

The following items must be allocated to principal: 1. To the extent not allocated to income under this chapter, assets received from any of the following sources: a. A transferor during the transferor’s lifetime. b. A decedent’s estate. c. A trust with a terminating income interest. d. A payor pursuant to a contract naming the trust or its trustee as beneficiary. 2. Cash or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this subchapter. 3. Amounts recovered from third parties to reimburse the trust because of disbursements described in section 637.502, subsection 1, paragraph “g”, or for other reasons to the extent not based on the loss of income. 4. Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income. 5. Net income received in a period during which there is no beneficiary to whom a trustee may or must distribute income. 6. Other receipts, as provided in part 3.