(1) To the extent a fiduciary does not account for the management of rental property as a business under Section 22-3-403, the fiduciary shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease.

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Terms Used In Utah Code 22-3-405

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Fiduciary: A trustee, executor, or administrator.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
(2) An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods:

     (2)(a) shall be added to principal and held subject to the terms of the lease, except as otherwise provided by law other than this chapter; and
     (2)(b) is not allocated to income or available for distribution to a beneficiary until the fiduciary’s contractual obligations have been satisfied with respect to that amount.