Utah Code 22-3-408. Receipts normally apportioned — Insubstantial allocation not required
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(1) If a fiduciary determines that an allocation between income and principal required by Section 22-3-409, 22-3-410, 22-3-411, 22-3-412, or 22-3-415 is insubstantial, the fiduciary may allocate the entire amount to principal, unless Subsection 22-3-203(5) applies to the allocation.
Terms Used In Utah Code 22-3-408
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Fiduciary: A trustee, executor, or administrator.
(2) A fiduciary may presume an allocation is insubstantial under Subsection (1) if:
(2)(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%; and
(2)(b) the asset producing the receipt to be allocated has a fair market value less than 10% of the total fair market value of the assets owned or held by the fiduciary at the beginning of the accounting period.
(3) The power to make a determination under Subsection (1) may be:
(3)(a) exercised by a co-fiduciary in the manner described in Subsection 22-3-203(6); or
(3)(b) released or delegated for a reason described in Subsection 22-3-203(7) and in the manner described in Subsection 22-3-203(8).