S 11-A-4.8  Insubstantial allocations not required

If a trustee determines that an allocation between principal and income required by 11-A-4.9, 11-A-4.10, 11-A-4.11, 11-A-4.12, or 11-A-4.15 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in subparagraph 11-2.3 (b)(5) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in subparagraph 11-2.3 (b)(5) and may be released for the reasons and in the manner described in that section. An allocation is presumed to be insubstantial if:

(1)   the amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten percent; or

(2)   the value of the asset producing the receipt for which the allocation would be made is less than ten percent of the total value of the trust`s assets at the beginning of the accounting period.