Utah Code 75A-5-410. Receipts normally apportioned — Liquidating asset
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(1) As used in this section:
Terms Used In Utah Code 75A-5-410
- 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
(1)(a) “Liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a limited time.(1)(b) “Liquidating asset” includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance.
(2) This section does not apply to a receipt subject to Section 75A-5-401 , 75A-5-409 , 75A-5-411 , 75A-5-412 , 75A-5-414 , 75A-5-415 , 75A-5-416 , or 75A-5-503 .
(3) A fiduciary shall allocate:
(3)(a) to income:
(3)(a)(i) a receipt produced by a liquidating asset, to the extent the receipt does not exceed 3% of the value of the asset; or
(3)(a)(ii) if the fiduciary cannot determine the value of the asset, 10% of the receipt; and
(3)(b) to principal, the balance of the receipt.