Vermont Statutes Title 14 Sec. 3363
Terms Used In Vermont Statutes Title 14 Sec. 3363
- Accounting period: means a calendar year unless another 12-month period is selected by a fiduciary. See
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Income: means money or property that a fiduciary receives as current return from a principal asset. See
- Marital deduction: The deduction(s) that can be taken in the determination of gift and estate tax liabilities because of the existence of a marriage or marital relationship.
- 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
§ 3363. Property not productive of income
(a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under section 3324 of this title and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by subsection 3324(a) of this title. The trustee may decide which action or combination of actions to take.
(b) In cases not governed by subsection (a) of this section, proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period. (Added 2011, No. 114 (Adj. Sess.), § 1.)