Section 555.906 – Income Beneficiaries and Remainder Benefits; Adjustments Between Principal and Income.
555.906 Income beneficiaries and remainder benefits; adjustments between principal and income. Sec. 506. (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 that arise from 1 or more of the following: (a) Elections and decisions, other than those […]
Section 555.904 – Principal Disbursement; Transfer of Amount to Provide Reserve.
555.904 Principal disbursement; transfer of amount to provide reserve. Sec. 504. (1) 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 1 or more accounting periods to reimburse principal or to provide a reserve for future principal […]
Section 555.905 – Tax Payments.
555.905 Tax payments. Sec. 505. (1) A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income. (2) 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 […]
Section 555.901 – Income Disbursements.
555.901 Income disbursements. Sec. 501. A trustee shall make the following disbursements from income to the extent that they are not disbursements to which section 201(b)(ii) or (iii) applies: (a) One-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee. (b) One-half of all […]
Section 555.902 – Principal Disbursements.
555.902 Principal disbursements. Sec. 502. (1) A trustee shall make the following disbursements from principal: (a) The remaining 1/2 of the disbursements described in section 501(a) and (b). (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 […]
Section 555.903 – Depreciation; Amount Transferred to Principal.
555.903 Depreciation; amount transferred to principal. Sec. 503. (1) As used 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. (2) A trustee may transfer to principal a reasonable amount of the net […]