§ 37A-5-501 – Disbursements from income.
37A-5-501. Disbursements from income. A trustee shall make the following disbursements from income to the extent that they are not disbursements to which G.S. 37A-2-201(2)b. or G.S. 37A-2-201(2)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; (2) One-half of all […]
§ 37A-5-502 – Disbursements from principal.
37A-5-502. Disbursements from principal. (a) A trustee shall make the following disbursements from principal: (1) The remaining one-half of the disbursements described in G.S. 37A-5-501(1) and G.S. 37A-5-501(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) Payments […]
§ 37A-5-503 – Transfers from income to principal for depreciation.
37A-5-503. 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 one year. (b) A trustee may transfer to principal a reasonable amount of the net cash receipts […]
§ 37A-5-504 – Transfers from income to reimburse principal.
37A-5-504. 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 […]
§ 37A-5-505 – Income taxes.
37A-5-505. 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 […]
§ 37A-5-506 – Adjustments between principal and income because of taxes.
37A-5-506. 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) of this section, that the fiduciary […]