Utah Code 75A-5-502. Disbursement from principal
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(1) Subject to Section 75A-5-505 , and except as otherwise provided in Subsection 75A-5-601 (3)(b) or (c), a fiduciary shall disburse from principal:
Terms Used In Utah Code 75A-5-502
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
- Decedent: A deceased person.
- Distribution: means a payment or transfer by a fiduciary to a beneficiary in the beneficiary's capacity as a beneficiary, made under the terms of the trust, without consideration other than the beneficiary's right to receive the payment or transfer under the terms of the trust. See Utah Code 75A-5-102
- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- Estate: includes the property of the decedent as the estate is originally constituted and the property of the estate as it exists at any time during administration. See Utah Code 75A-5-102
- 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
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- 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
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Trust: includes :
(23)(a)(i) an express trust, private or charitable, with additions to the trust, wherever and however created; and(23)(a)(ii) a trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust. See Utah Code 75A-5-102(1)(a) the balance of the disbursements described in Subsections75A-5-501 (1) and (3), after application of Subsection75A-5-501 (2);(1)(b) the fiduciary‘s compensation calculated on principal as a fee for acceptance, distribution, or termination;(1)(c) a payment of an expense to prepare for or execute a sale or other disposition of property;(1)(d) a payment on the principal of a trust debt;(1)(e) a payment of an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily principal, including a proceeding to construe the terms of the trust or protect property;(1)(f) a payment of a premium for insurance, including title insurance, not described in Subsection75A-5-501 (4), of which the fiduciary is the owner and beneficiary;(1)(g) a payment of an estate or inheritance tax or other tax imposed because of the death of a decedent, including penalties, apportioned to the trust; and(1)(h) a payment:(1)(h)(i) related to environmental matters, including:(1)(h)(i)(A) reclamation;(1)(h)(i)(B) assessing environmental conditions;(1)(h)(i)(C) remedying and removing environmental contamination;(1)(h)(i)(D) monitoring remedial activities and the release of substances;(1)(h)(i)(E) preventing future releases of substances;(1)(h)(i)(F) collecting amounts from persons liable or potentially liable for the costs of activities described in Subsections (1)(h)(i)(A) through (E);(1)(h)(i)(G) penalties imposed under environmental laws or regulations;(1)(h)(i)(H) other actions to comply with environmental laws or regulations;(1)(h)(i)(I) statutory or common law claims by third parties; and(1)(h)(i)(J) defending claims based on environmental matters; and(1)(h)(ii) for a premium for insurance for matters described in Subsection (1)(h)(i).(2) If a principal asset is encumbered with an obligation that requires income from the asset to be paid directly to a creditor, the fiduciary shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.