1446                               LAWS OF MARYLAND                        [CH. 877

(3) income in the form of periodic payments (other than cor-
porate distributions to stockholders), including rent, ground rents,
interest, or annuities, not due on the date of termination, accrued to
date of termination of such income interest.

(e)     When periodic payments of income are payable in advance
with respect to the period for which they are payable, the apportion-
ment hereinbefore directed shall be as if the periodic payment in
question had been payable at the end of such period.

(f)    Corporate distributions to stockholders shall be treated as
due on the day fixed by the corporation for determination of stock-
holders of record entitled to distribution or, if no date is fixed, on
the date of declaration of the distribution by the corporation.

5.

(a)     Unless the will otherwise provides and subject to subsection
(b), all expenses incurred in connection with the settlement of a dece-
dent's estate, including debts, funeral expenses, estate taxes, interest
and penalties concerning such taxes, family allowances, fees of at-
torneys and personal representatives, and court costs shall be charged
against the principal of the estate.

(b)     Unless the will otherwise provides, income from the assets of
a decedent's estate after the death of the testator and before distribu-
tion, including income from property used to discharge liabilities,
shall be determined in accordance with the rules applicable to a
trustee under this Article and distributed as follows:

(1)    to specific legatees and devisees, the income from the prop-
erty bequeathed or devised to them respectively, less taxes, ordinary
repairs and other expenses of management and operation relating
to such property, and an appropriate portion of interest accrued since
the death of the testator and of taxes imposed on income (excluding
taxes on capital gains) which accrue during the period of adminis-
tration;

(2)    to all other legatees and devisees, except legatees (other than
a surviving spouse) of pecuniary bequests not in trust, the balance
of the income, less taxes, ordinary repairs and other expenses of
management and operation relating to all other property from which
the estate is entitled to income, the balance of interest accrued since
the death of the testator, and the balance of taxes imposed on income
(excluding taxes on capital gains) which accrue during the period of
administration, in proportion to their respective interests in the
undistributed assets of the estate computed at the times of distribu-
tion on the basis of inventory value.

(c)    Income received by a trustee under subsection (b) shall be
treated as income of the trust.

6.

(a) Corporate distributions of shares of the distributing cor-
poration (whether or not of the same class), including distributions
in the form of a stock split or stock dividend, are principal BUT THE
PROVISIONS OF THIS SUBSECTION SHALL NOT APPLY TO
SUCCESSIVE ESTATES OR INTERESTS IN EXISTENCE
PRIOR TO JUNE 1, 1965, IN WHICH THE LIFE TENANT IS