US Lawyer Database

Section 15-528 – 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 which arise from:         (1)    Elections and decisions, other than those described in subsection (b) of this section, that the fiduciary makes from time to time regarding tax matters;         (2)    An income tax […]

Section 15-523 – Disbursements From Income

    A trustee shall make the following disbursements from income to the extent that they are not disbursements to which § 15–503(c)(2) or (3) of this subtitle apply:         (1)    Regular compensation of the trustee on income, if determined in accordance with § 14.5–708(b) of this article;         (2)    That portion of the regular compensation of the trustee, if the […]

Section 15-524 – Disbursements From Principal

    (a)    A trustee shall make the following disbursements from principal:         (1)    Regular compensation of the trustee on principal, if determined in accordance with § 14.5–708(c) of this article;         (2)    That portion of the regular compensation of the trustee, if the compensation is determined in a manner other than in accordance with § 14.5–708(b) and (c) of this article, […]

Section 15-525 – Transfers From Income to Principal for Depreciation

    (a)    In 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.     (b)    A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but […]

Section 15-526 – 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 to which subsection (a) applies include the following, but […]

Section 15-527 – Income Taxes

    (a)    A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income.     (b)    A tax required to be paid by a trustee based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing authority.     (c)    A tax […]