Arkansas Code § 28-77-404

Principal receipts
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A fiduciary shall allocate to principal: (1) to the extent not allocated to income under this chapter, an asset received from: (A) an individual during the individual's lifetime; (B) an estate; (C) a trust on termination of an income interest; or (D) a payor under a contract naming the fiduciary as beneficiary; (2) except as otherwise provided in this subchapter, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset; (3) an amount recovered from a third party to reimburse the fiduciary because of a disbursement described in § 28-77-502(a) or for another reason to the extent not based on loss of income; (4) proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period; (5) net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and (6) other receipts as provided in Part 3. Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
A fiduciary shall allocate to principal: (1) to the extent not allocated to income under this chapter, an asset received from: (A) an individual during the individual's lifetime; (B) an estate; (C) a trust on termination of an income interest; or (D) a payor under a contract naming the fiduciary as beneficiary; (2) except as otherwise provided in this subchapter, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset; (3) an amount recovered from a third party to reimburse the fiduciary because of a disbursement described in § 28-77-502(a) or for another reason to the extent not based on loss of income; (4) proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period; (5) net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and (6) other receipts as provided in Part 3. Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
A fiduciary shall allocate to principal: (1) to the extent not allocated to income under this chapter, an asset received from: (A) an individual during the individual's lifetime; (B) an estate; (C) a trust on termination of an income interest; or (D) a payor under a contract naming the fiduciary as beneficiary; (2) except as otherwise provided in this subchapter, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset; (3) an amount recovered from a third party to reimburse the fiduciary because of a disbursement described in § 28-77-502(a) or for another reason to the extent not based on loss of income; (4) proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period; (5) net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and (6) other receipts as provided in Part 3. Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
A fiduciary shall allocate to principal:
(1) to the extent not allocated to income under this chapter, an asset received from: (A) an individual during the individual's lifetime; (B) an estate; (C) a trust on termination of an income interest; or (D) a payor under a contract naming the fiduciary as beneficiary;
(A) an individual during the individual's lifetime;
(B) an estate;
(C) a trust on termination of an income interest; or
(D) a payor under a contract naming the fiduciary as beneficiary;
(2) except as otherwise provided in this subchapter, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset;
(3) an amount recovered from a third party to reimburse the fiduciary because of a disbursement described in § 28-77-502(a) or for another reason to the extent not based on loss of income;
(4) proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period;
(5) net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and
(6) other receipts as provided in Part 3.

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