Vermont Statutes Title 14 Sec. 3362
Terms Used In Vermont Statutes Title 14 Sec. 3362
- Contract: A legal written agreement that becomes binding when signed.
- Decedent: A deceased person.
- Income: means money or property that a fiduciary receives as current return from a principal asset. See
- Income interest: means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion. See
- 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
- Principal: means property held in trust for distribution to a remainder beneficiary when the trust terminates. See
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court. See
§ 3362. Timber
(a) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts:
(1) to income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;
(2) to principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;
(3) to or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in subdivision (1) and (2) of this subsection; or
(4) to principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to subdivision (1), (2), or (3) of this subsection.
(b) In determining net receipts to be allocated pursuant to subsection (a) of this section, a trustee shall deduct and transfer to principal a reasonable amount for depletion.
(c) This chapter applies whether or not a decedent or transferor was harvesting timber from the property before it become subject to the trust.
(d) If a trust owns an interest in timberland on July 1, 2012, the trustee may allocate net receipts from the sale of timber and related products as provided in this chapter or in the manner used by the trustee before July 1, 2012. If the trust acquires an interest in timberland after July 1, 2012, the trustee shall allocate net receipts from the sale of timber and related products as provided in this chapter. (Added 2011, No. 114 (Adj. Sess.), § 1.)