738.603 Liquidating asset.— (1) For purposes of this section, the term “liquidating asset” means an asset the value of which will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments for more than 1 year […]
738.604 Minerals, water, and other natural resources.— (1) If a fiduciary accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the fiduciary shall allocate such receipts as follows: (a) If received as nominal delay rental or nominal annual rent on a lease, a receipt shall be allocated to income. (b) If received […]
738.605 Timber.— (1) If a fiduciary accounts for receipts from the sale of timber and related products pursuant to this section, the fiduciary shall allocate such net receipts as follows: (a) To income to the extent the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods […]
738.606 Property not productive of income.— (1) If a marital deduction under the Internal Revenue Code or comparable law of any state is allowed for all or part of a trust, or if assets are transferred to a trust that satisfies the requirements of s. 732.2025(2)(a) and (c), and such assets have been used in whole or […]
738.607 Derivatives and options.— (1) For purposes of this section, “derivative” means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a […]
738.608 Asset-backed securities.— (1) For purposes of this section, “asset-backed security” means an asset the value of which is based upon the right given the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive from the collateral […]
738.701 Disbursements from income.—A fiduciary shall make the following disbursements from income to the extent they are not disbursements to which s. 738.201(2) applies: (1) One-half of the regular compensation of the fiduciary and of any person providing investment advisory or custodial services to the fiduciary. (2) One-half of all expenses for accountings, judicial proceedings, or other matters […]
738.702 Disbursements from principal.— (1) A fiduciary shall make the following disbursements from principal: (a) The remaining one-half of the disbursements described in s. 738.701(1) and (2). (b) 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. (c) Payments on the principal of a trust […]
738.703 Transfers from income to principal for depreciation.— (1) For purposes of this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than 1 year. (2) A fiduciary may transfer to principal a reasonable amount of the net cash receipts from […]
738.704 Transfers from income to reimburse principal.— (1) If a fiduciary makes or expects to make a principal disbursement described in this section, the fiduciary 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. (2) Principal disbursements to which subsection […]
738.705 Income taxes.— (1) A tax required to be paid by a fiduciary based on receipts allocated to income shall be paid from income. (2) A tax required to be paid by a fiduciary based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing authority. […]
738.706 Adjustments between principal and income because of taxes.— (1) 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 which arise from: (a) Elections and decisions, other than those described in paragraph (b), that the fiduciary makes from time to time regarding […]
738.801 Apportionment of expenses; improvements.— (1) For purposes of this section, the term: (a) “Remainderman” means the holder of the remainder interests after the expiration of a tenant’s estate in property. (b) “Tenant” means the holder of an estate for life or term of years in real property or personal property, or both. (2) If a trust has not been […]
738.802 Uniformity of application and construction.—In applying and construing this act, consideration shall be given to the need to promote uniformity of the law with respect to the act’s subject matter among states that enact such act. History.—s. 1, ch. 2002-42.
738.803 Severability.—If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. History.—s. 1, ch. 2002-42.
738.804 Application.—Except as provided in the trust instrument, the will, or this chapter, this chapter shall apply to any receipt or expense received or incurred and any disbursement made after January 1, 2003, by any trust or decedent’s estate, whether established before or after January 1, 2003, and whether the asset involved was acquired by the […]
