(202) Distribution to residuary and remainder beneficiaries
N.D. Cent. Code § 59-04.2-05
in effect59-04.2-05. (202) Distribution to residuary and remainder beneficiaries
1. Each beneficiary described in subsection 4 of section 59-04.2-04 is entitled to receive
a portion of the net income equal to the beneficiary's fractional interest in undistributed
principal assets, using values as of the distribution date. If a fiduciary makes more
than one distribution of assets to beneficiaries to whom this section applies, each
beneficiary, including one who does not receive part of the distribution, is entitled, as of
each distribution date, to the net income the fiduciary has received after the date of
death or terminating event or earlier distribution date but has not distributed as of the
current distribution date.
2. In determining a beneficiary's share of net income, the following rules apply:
a. The beneficiary is entitled to receive a portion of the net income equal to the
beneficiary's fractional interest in the undistributed principal assets immediately
before the distribution date, including assets that later may be sold to meet
principal obligations.
b. The beneficiary's fractional interest in the undistributed principal assets must be
calculated without regard to property specifically given to a beneficiary and
property required to pay pecuniary amounts not in trust.
c. The beneficiary's fractional interest in the undistributed principal assets must be
calculated on the basis of the aggregate value of those assets as of the
distribution date without reducing the value by any unpaid principal obligation.
d. The distribution date for purposes of this section may be the date as of which the
fiduciary calculates the value of the assets if that date is reasonably near the date
on which assets are actually distributed.
3. If a fiduciary does not distribute all of the collected but undistributed net income to
each person as of a distribution date, the fiduciary shall maintain appropriate records
showing the interest of each beneficiary in that net income.
4. A fiduciary may apply the rules in this section, to the extent that the fiduciary considers
it appropriate, to net gain or loss realized after the date of death or terminating event
or earlier distribution date from the disposition of a principal asset if this section applies
to the income from the asset.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t59c04-2.pdf#nameddest=59-04p2-05Fetched: 10/16/2026