Undisbursed Income Law and Legal Definition

Undisbursed income refers to an income retained in the estate by executor or trustee.

Any undisbursed income, when viewed in the context of the clause in which the testator employs it, can mean only one thing, income not actually paid. Under a provision in a will that any undisbursed income should be paid to the residuary estate after the death of the life tenant, the words will be taken to mean any income not actually paid out to the life tenant, and will not be restricted in their meaning to include only that income accruing during the period between the death of the life tenant and the distribution to the residuary estate. [Rhode Island Hosp. Trust Co. v. Otis, 77 R.I. 296, 301 (R.I. 1950)].