---
title: O.C.G.A. § 53-12-420. Principal receipts.
collection: code
id: 53-12-420
cite_as: O.C.G.A. § 53-12-420 (2025)
canonical_url: https://georgiacommons.org/code/53-12-420
md_url: https://georgiacommons.org/code/53-12-420.md
text_url: https://georgiacommons.org/code/53-12-420/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t52-t53-(v40)-2021-pdf.pdf?sfvrsn=d23ba203_0#page=946
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
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publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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version: the only printed version
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current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: WILLS, TRUSTS, AND ADMINISTRATION OF ESTATES / TRUSTS / GEORGIA PRINCIPAL AND INCOME ACT / ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST / Receipts Not Normally Apportioned
---

# O.C.G.A. § 53-12-420. Principal receipts.

A trustee shall allocate to principal:

(1) To the extent not allocated to income under this article, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payor under a contract naming the trust or its trustee as beneficiary;

(2) Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to the provisions of this article;

(3) Amounts recovered from third parties to reimburse the trust because of disbursements described in paragraph (7) of subsection (a) of Code Section 53-12-451 or for other reasons to the extent not based on the loss of income;

(4) Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest shall be income;

(5) Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and

(6) Other receipts as provided in this article.

## History

Code 1981, § 53-12-420, enacted by Ga. L. 2010, p. 579, § 1/SB 131; Ga. L. 2011, p. 752, § 53/HB 142.