Utah Code 22-3-504. Reimbursement of income from principal
Current as of: 2024 | Check for updates
|
Other versions
(1) If a fiduciary makes or expects to make an income disbursement described in Subsection (2), the fiduciary may transfer an appropriate amount from principal to income in one or more accounting periods to reimburse income.
Terms Used In Utah Code 22-3-504
- Fiduciary: A trustee, executor, or administrator.
- Property: includes both real and personal property. See Utah Code 68-3-12.5
(2) To the extent the fiduciary has not been and does not expect to be reimbursed by a third party, income disbursements to which Subsection (1) applies include:
(2)(a) an amount chargeable to principal but paid from income because principal is illiquid;
(2)(b) a disbursement made to prepare property for sale, including improvements and commissions; and
(2)(c) a disbursement described in Subsection 22-3-502(1).
(3) If an asset whose ownership gives rise to an income disbursement becomes subject to a successive interest after an income interest ends, the fiduciary may continue to make transfers under Subsection (1).