Sec. 712.0357.  NATURE OF TOTAL RETURN DISTRIBUTIONS.  (a)  A distribution from a total return fund is considered a distribution of all income of the fund that reasonably apportions the total return of the fund, and may not be considered a fundamental departure from applicable state law.
(b)  Unless the trust instrument provides otherwise, the trustee of a total return fund shall treat a distribution as first being made from the following sources in order of priority:
(1)  from net accounting income;
(2)  from ordinary accounting income not allocable to net accounting income;
(3)  from net realized short-term capital gains;
(4)  from net realized long-term capital gains; and
(5)  from the principal of the fund.
Added by Acts 2017, 85th Leg., R.S., Ch. 1051 (H.B. 1948), Sec. 1, eff. September 1, 2017.