Florida Statutes 738.408 – Insubstantial allocation not required
Current as of: 2024 | Check for updates
|
Other versions
(1) If a fiduciary determines that an allocation between income and principal required by s. 738.409, s. 738.410, s. 738.411, s. 738.412, or s. 738.415 is insubstantial, the fiduciary may allocate the entire amount to principal, unless s. 738.203(5) applies to the allocation.
(2) A fiduciary may presume an allocation is insubstantial under subsection (1) if:
(a) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10 percent; and
Terms Used In Florida Statutes 738.408
- Accounting period: means a calendar year unless a fiduciary selects another period of 12 calendar months or approximately 12 calendar months. See Florida Statutes 738.102
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Carrying value: means the fair market value at the time the assets are received by the fiduciary. See Florida Statutes 738.102
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: includes a trustee, a trust director as defined in…. See Florida Statutes 738.102
- Income: means money or other property a fiduciary receives as current return from principal. See Florida Statutes 738.102
- Net income: means the total allocations during an accounting period to income under the terms of a trust and this chapter minus the disbursements during the period, other than distributions, allocated to income under the terms of the trust and this chapter. See Florida Statutes 738.102
- Principal: means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. See Florida Statutes 738.102
(b) The asset producing the receipt to be allocated has a carrying value less than 10 percent of the total carrying value of the assets owned or held by the fiduciary at the beginning of the accounting period.