A trustee shall allocate to principal any of the following: (1) to the extent not allocated to income under this chapter, assets received from (A) a transferor during the transferor's lifetime; (B) a decedent's estate; (C) a trust with a terminating income interest; or (D) a payor under a contract naming the trust or its trustee as beneficiary; (2) money or other property received from a principal asset's sale, exchange, liquidation, or change in form, including realized profit subject to AS 13.38.600 - 13.38.750; (3) amounts recovered from third parties to reimburse the trust because of disbursements described in AS 13.38.810(a)(8) or for other reasons, to the extent not based on the loss of income, except that 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 is income; (4) net income received in an accounting period during which there is not a beneficiary to whom a trustee may or must distribute income; (5) other receipts as provided in AS 13.38.680 - 13.38.750.
Alaska Legal Code