Section 72-34-440 - Insubstantial allocation - allocation of entire amount to principal - exceptions(1) If a trustee determines that an allocation between principal and income required by 72-34-441, 72-34-442, 72-34-443, 72-34-444, or 72-34-447 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in 72-34-424(2) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in 72-34-424(3) and may be released for the reasons and in the manner provided in 72-34-424(4) and (5).(2) An allocation is presumed to be insubstantial in either of the following cases: (a) when the amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10%; or(b) when the value of the asset producing the receipt for which the allocation would be made is less than 10% of the total value of the trust's assets at the beginning of the accounting period.(3) Nothing in this section imposes a duty on the trustee to make an allocation under this section, and the trustee is not liable for failure to make an allocation under this section.En. Sec. 20, Ch. 506, L. 2003.