Section 11-A-2.2. Distribution to residuary and remainder beneficiaries

(a)  Each  beneficiary described in paragraph 11-A-2.1 (4) is entitled
  to receive a portion of  the  net  income  equal  to  the  beneficiary's
  fractional  interest  in undistributed principal assets, using values as
  of the distribution date, provided, however, that any amount allowed  as
  a  tax  deduction  to  the  estate  for  income  payable to a charitable
  organization shall  be  paid,  without  diminution  for  taxes,  to  the
  charitable  organization entitled to receive such income. If a fiduciary
  makes more than one distribution of assets to beneficiaries to whom this
  section applies, each beneficiary, including one who  does  not  receive
  part  of the distribution, is entitled, as of each distribution date, to
  the net income the fiduciary has received after the  date  of  death  or
  terminating  event  or earlier distribution date but has not distributed
  as of the current distribution date.
    (b) In determining a beneficiary's share of net income, the  following
  rules apply:
    (1) The beneficiary is entitled to receive a portion of the net income
  equal  to  the  beneficiary's  fractional  interest in the undistributed
  principal assets immediately before  the  distribution  date,  including
  assets that later may be sold to meet principal obligations.
    (2)   The  beneficiary's  fractional  interest  in  the  undistributed
  principal  assets  must  be  calculated  without  regard   to   property
  specifically  given  to  a  beneficiary  and  property  required  to pay
  pecuniary amounts not in trust.
    (3)  The  beneficiary's  fractional  interest  in  the   undistributed
  principal  assets must be calculated on the basis of the aggregate value
  of those assets as of the distribution date without reducing  the  value
  by any unpaid principal obligation.
    (4) The distribution date for purposes of this section may be the date
  as  of  which  the  fiduciary calculates the value of the assets if that
  date  is  reasonably  near  the  date  on  which  assets  are   actually
  distributed.
    (c)  If  a  fiduciary  does  not  distribute  all of the collected but
  undistributed net income to each person as of a distribution  date,  the
  fiduciary  shall  maintain  appropriate  records showing the interest of
  each beneficiary in that net income.
    (d) A fiduciary may apply the rules in this  section,  to  the  extent
  that  the  fiduciary  considers  it  appropriate,  to  net  gain or loss
  realized after the  date  of  death  or  terminating  event  or  earlier
  distribution  date  from  the  disposition  of a principal asset if this
  section applies to the income from the asset.
    (e) The portion of a beneficiary determined  under  paragraph  (a)  is
  subject   to   the   fiduciary's   further  power  of  adjustment  under
  subparagraph 11-2.3(b)(5), which adjustment if made shall be made to  or
  from  the  principal  of  such  beneficiary's share. The fiduciary shall
  maintain appropriate records showing  the  principal  interest  of  each
  beneficiary, as adjusted.