Utah Code 75A-5-403. Receipts from entity — Business or other activity conducted by fiduciary
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(1) This section applies to a business or other activity conducted by a fiduciary if the fiduciary determines that it is in the interests of the beneficiaries to account separately for the business or other activity instead of:
Terms Used In Utah Code 75A-5-403
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: includes :(8)(a) a trustee, trust director as defined in Section
75-12-102 , personal representative, life tenant, holder of a term interest, and person acting under a delegation from a fiduciary;(8)(b) a person that holds property for a successor beneficiary whose interest may be affected by an allocation of receipts and expenditures between income and principal; and(8)(c) if there are two or more co-fiduciaries, all co-fiduciaries acting under the terms of the trust and applicable law. See Utah Code 75A-5-102- Income: includes a part of receipts from a sale, exchange, or liquidation of a principal asset to the extent provided in Part 4, Allocation of Receipts. See Utah Code 75A-5-102
- Principal: means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. See Utah Code 75A-5-102
- Trust: includes :
(23)(a)(i) an express trust, private or charitable, with additions to the trust, wherever and however created; and(23)(a)(ii) a trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust. See Utah Code 75A-5-102(1)(a) accounting for the business or other activity as part of the fiduciary’s general accounting records; or(1)(b) conducting the business or other activity through an entity described in Subsection75A-5-401 (1)(b)(i).(2) A fiduciary may account separately under this section for the transactions of a business or other activity, whether or not assets of the business or other activity are segregated from other assets held by the fiduciary.(3) A fiduciary that accounts separately under this section for a business or other activity:(3)(a) may determine:(3)(a)(i) the extent to which the net cash receipts of the business or other activity shall be retained for:(3)(a)(i)(A) working capital;(3)(a)(i)(B) the acquisition or replacement of fixed assets; and(3)(a)(i)(C) other reasonably foreseeable needs of the business or other activity; and(3)(a)(ii) the extent that the remaining net cash receipts are accounted for as principal or income in the fiduciary’s general accounting records for the trust;(3)(b) may make a determination under Subsection (3)(a) separately and differently from the fiduciary’s decisions concerning distributions of income or principal; and(3)(c) shall account for the net amount received from the sale of an asset of the business or other activity, other than a sale in the ordinary course of the business or other activity, as principal in the fiduciary’s general accounting records for the trust, to the extent the fiduciary determines that the net amount received is no longer required in the conduct of the business or other activity.(4) A fiduciary may account separately under this section for activities that include:(4)(a) retail, manufacturing, service, and other traditional business activities;(4)(b) farming;(4)(c) raising and selling livestock and other animals;(4)(d) managing rental properties;(4)(e) extracting minerals, water, and other natural resources;(4)(f) growing and cutting timber;(4)(g) an activity to which Section75A-5-414 ,75A-5-415 , or75A-5-416 applies; and(4)(h) any other business conducted by the fiduciary.