72-34-430. Beneficiary's entitlement to net income -- assets subject to trust -- assets subject to successive income interest -- termination of income interest. (1) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.
(2) An asset becomes subject to a trust at the following times:
(a) in the case of an asset that is transferred to a trust during the transferor's life, on the date it is transferred to the trust;
(b) in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate, on the date of the testator's death; or
(c) in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death, on the date of the individual's death.
(3) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (4), even if there is an intervening period of administration to wind up the preceding income interest.
(4) 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 whom a trustee may distribute income.