§ 14-7423 – Derivatives and options; definition
14-7423. Derivatives and options; definition A. To the extent that a trustee does not account under section 14-7412 for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions. B. If a trustee grants an option to buy property from the trust, whether or not the […]
§ 14-7424 – Asset-backed securities; definition
14-7424. Asset-backed securities; definition A. If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment that the payer identifies as being from interest or other current return and shall allocate the balance of […]
§ 14-7425 – Disbursements from income
14-7425. Disbursements from income A trustee shall make the following disbursements from income to the extent that they are not disbursements to which section 14-7405, paragraph 2, subdivision (b) or (c) applies: 1. One-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee, whether […]
§ 14-7426 – Disbursements from principal
14-7426. Disbursements from principal A. A trustee shall make the following disbursements from principal: 1. The remaining one-half of the disbursements described in section 14-7425, paragraphs 1 and 2. 2. All of the trustee’s compensation calculated on principal as a fee for acceptance, distribution or termination and disbursements made to prepare property for sale. 3. […]
§ 14-7427 – Transfers from income to principal for depreciation; definition
14-7427. Transfers from income to principal for depreciation; definition A. A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation but may not transfer any amount for depreciation: 1. Of that portion of real property used or available for use by a […]
§ 14-7428 – Transfers from income to reimburse principal
14-7428. Transfers from income to reimburse principal A. If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements. B. Principal disbursements […]
§ 14-7413 – Principal receipts
14-7413. Principal receipts A trustee shall allocate to principal: 1. To the extent not allocated to income under this article, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest or a payer under a contract naming the trust or its trustee as beneficiary. 2. Money […]
§ 14-7429 – Income taxes
14-7429. Income taxes A. A tax required to be paid by a trustee based on receipts allocated to income must be paid from income. B. A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by […]
§ 14-7414 – Rental property
14-7414. Rental property To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a […]
§ 14-7430 – Adjustments between principal and income because of taxes
14-7430. Adjustments between principal and income because of taxes A. A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries that arise from: 1. Elections and decisions, other than those described in subsection B, that the fiduciary makes from time […]