Section 11-A-2.1. Determination and distribution of net income

After  a  decedent  dies, in the case of an estate, or after an income
  interest in a trust ends, the following rules apply:
    (1) A fiduciary 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 the rules in
  parts 3 through 5 which apply to trustees and  the  rules  in  paragraph
  (5).  The  fiduciary  shall  distribute the net income and net principal
  receipts to the beneficiary who is to receive the specific property.
    (2) A  fiduciary  shall  determine  the  remaining  net  income  of  a
  decedent's  estate  or  a terminating income interest under the rules in
  parts 3 through 5 which apply to trustees and by:
    (A) including in net income all income from property used to discharge
  liabilities;
    (B) paying from income or principal, in  the  fiduciary's  discretion,
  fees  of  attorneys, accountants, and fiduciaries; court costs and other
  expenses of  administration;  and  interest  on  death  taxes,  but  the
  fiduciary  may  pay  those expenses from income of property passing to a
  trust for which the fiduciary claims an estate tax marital or charitable
  deduction only to the extent that the payment  of  those  expenses  from
  income will not cause the reduction or loss of the deduction; and
    (C)  paying from principal all other disbursements made or incurred in
  connection with the settlement of a decedent's estate or the winding  up
  of  a  terminating  income  interest, including debts, funeral expenses,
  disposition of remains, family allowances, and death taxes  and  related
  penalties  that  are  apportioned  to  the  estate or terminating income
  interest by the will, the terms of the trust, or applicable law.
    (3) A fiduciary shall distribute  to  a  beneficiary  who  receives  a
  pecuniary  amount  outright the interest or any other amount provided by
  the will, the terms of the trust, or  applicable  law  from  net  income
  determined  under paragraph (2) or from principal to the extent that net
  income is insufficient. If a  beneficiary  is  to  receive  a  pecuniary
  amount  outright  from  a  trust  after  an  income interest ends and no
  interest or other amount is provided for by the terms of  the  trust  or
  applicable  law,  the  fiduciary  shall distribute the interest or other
  amount to which the beneficiary would be entitled under  applicable  law
  if the pecuniary amount were required to be paid under a will.
    (4)  A  fiduciary  shall  distribute  the  net  income remaining after
  distributions required by paragraph  (3)  in  the  manner  described  in
  11-A-2.2  to  all  other  beneficiaries,  including  a  beneficiary  who
  receives a pecuniary amount in trust, even if the beneficiary  holds  an
  unqualified  power  to withdraw assets from the trust or other presently
  exercisable general power of appointment over the trust.
    (5) A fiduciary may not  reduce  principal  or  income  receipts  from
  property  described  in  paragraph (1) because of a payment described in
  11-A-5.1 or 11-A-5.2 to the extent that  the  will,  the  terms  of  the
  trust, 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
  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 by 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.