ARTICLE 7. Apportionment at Beginning and End of Income Interest [16375. - 16377.]

Cal. Probate Code - PROB 7.

in effect

Cal. Probate Code - PROB § 16375. Section 16375.

(a) An income beneficiary is entitled to net income in accordance with the terms of the trust from the date an income interest begins. The income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to either of the following: (1) The trust for the current income beneficiary. (2) A successive interest for a successor beneficiary. (b) An asset becomes subject to a trust under paragraph (1) of subdivision (a) as follows: (1) For an asset that is transferred to the trust during the settlor’s life, on the date the asset is transferred. (2) For an asset that becomes subject to the trust because of a decedent’s death, on the date of the decedent’s death, even if there is an intervening period of administration of the decedent’s estate. (3) For an asset that is transferred to a fiduciary by a third party because of a decedent’s death, on the date of the decedent’s death. (c) An asset becomes subject to a successive interest under paragraph (2) of subdivision (a) on the day after the preceding income interest ends, as determined under subdivision (d), even if there is an intervening period of administration to wind up the preceding income interest. (d) An income interest ends on the day before an income beneficiary dies or another terminating event occurs or on the last day of a period during which there is no beneficiary to which a fiduciary may, or is required to, distribute income.

Cal. Probate Code - PROB § 16376. Section 16376.

(a) A fiduciary shall allocate an income receipt or disbursement, other than a receipt to which subdivision (b) of Section 16370 applies, to principal if its due date occurs before the date on which either of the following occurs: (1) For an estate, the decedent died. (2) For a trust or successive interest, an income interest begins. (b) If the due date of a periodic income receipt or disbursement occurs on or after the date on which a decedent died or an income interest begins, a fiduciary shall allocate the receipt or disbursement to income. (c) If an income receipt or disbursement is not periodic or has no due date, a fiduciary shall treat the receipt or disbursement under this section as accruing from day to day. The fiduciary shall allocate to principal the portion of the receipt or disbursement accruing before the date on which a decedent died or an income interest begins, and to income the balance. (d) A receipt or disbursement is periodic under subdivisions (b) and (c) under either of the following circumstances: (1) The receipt or disbursement shall be paid at regular intervals under an obligation to make payments. (2) The payor customarily makes payments at regular intervals. (e) An item of income or obligation is due under this section on the date the payor is required to make a payment. If a payment date is not stated, there is no due date. (f) Distributions to shareholders or other owners from an entity to which Section 16340 applies are due at one of the following times: (1) On the date fixed by or on behalf of the entity for determining the persons entitled to receive the distribution. (2) If a date is not fixed, on the date of the decision by or on behalf of the entity to make the distribution. (3) If a date is not fixed and the fiduciary does not know the date of the decision by or on behalf of the entity to make the distribution, on the date the fiduciary learns of the decision.

Cal. Probate Code - PROB § 16377. Section 16377.

(a) For purposes of this section, “undistributed income” means net income received on or before the date on which an income interest ends. “Undistributed income” does not include an item of income or expense that is due or accrued, or net income that has been added or is required to be added to principal under the terms of the trust. (b) Except as otherwise provided in subdivision (c), when a mandatory income interest of a beneficiary ends, the fiduciary shall pay the beneficiary’s share of the undistributed income that is not disposed of under the terms of the trust to the beneficiary or, if the beneficiary does not survive the date the interest ends, to the beneficiary’s estate. (c) If a beneficiary has an unqualified power to withdraw more than 5 percent of the value of a trust immediately before an income interest ends, both of the following shall apply: (1) The fiduciary shall allocate to principal the undistributed income from the portion of the trust that may be withdrawn. (2) Subdivision (b) applies only to the balance of the undistributed income. (d) When a fiduciary’s obligation to pay a fixed annuity or a fixed fraction of the value of assets ends, the fiduciary shall prorate the final payment as required to preserve an income tax, gift tax, estate tax, or other tax benefit.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026