§ 11-A-4.9 Deferred compensation, annuities, and similar payments

(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 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 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 paragraph, 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 11-A-4.10
applies.