(1) If a trustee determines that an allocation between principal and income required by the provisions of sections 15-1-419 to 15-1422 or section 15-1-425 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in section 15-1-404 (3) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in section 15-1-404 (4) and may be released for the reasons and in the manner described in section 15-1-404 (5). An allocation is presumed to be insubstantial if:
The amount of the allocation would increase or decrease net income in an accountingperiod, as determined before the allocation, by less than ten percent; or
The value of the asset producing the receipt for which the allocation would be madeis less than ten percent of the total value of the trust's assets at the beginning of the accounting period.
Source: L. 2000: Entire part R&RE, p. 1141, § 1, effective July 1, 2001.