After a decedent dies in the case of an estate, or after an income interest in a trust ends, a fiduciary
(1) of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property specifically given to a beneficiary under (5) of this section and the provisions applicable to trustees in AS 13.38.550 - 13.38.860; the fiduciary shall distribute the net income and net principal receipts to the beneficiary who is to receive the specific property;
(2) shall distribute to a beneficiary or trust that receives a pecuniary amount a share of net income equal to the beneficiary's or trust's fractional interest in undistributed principal assets as determined under AS 13.38.510(a), (b)(1), (b)(3), and (c) - (e); the share accrues from the date of death of a decedent, in the case of an estate, or the date of death of a settlor or specified event, in the case of a revocable or irrevocable trust;
(3) shall determine the remaining net income of a decedent's estate or a terminating income interest under the provisions applicable to trustees in AS 13.38.550 - 13.38.860 and by
(A) including in net income all income from property used to discharge liabilities; and
(B) paying from principal the debts, the funeral expenses, the costs of disposition of remains, the family allowance under AS 13.12.404, fees of personal representatives and their attorneys and accountants, and the taxes, related interest, and penalties described in AS 13.38.810(a)(7) that are apportioned to the estate or terminating income interest by the governing instrument or applicable law;
(4) shall distribute the net income remaining after distributions required by (2) of this section in the manner described in AS 13.38.510 to all other beneficiaries;
(5) may not reduce principal or income receipts from property described in (1) of this section because of a payment described in AS 13.38.800 or 13.38.810 to the extent that the governing instrument or applicable law requires the fiduciary to make the payment from assets other than the property or to the extent that the fiduciary recovers or expects to recover the payment from a third party; the net income and principal receipts from the property are determined by
(A) including all of the amounts the fiduciary receives or pays with respect to the property, whether those amounts accrued or became due before, on, or after the date of a decedent's death or an income interest's terminating event; and
(B) making a reasonable provision for amounts that the fiduciary believes the estate or terminating income interest may become obligated to pay after the property is distributed.