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.