Section 505 – Reimbursement of principal from income.
Effective 7/1/2020 22-3-505. Reimbursement of principal from income. (1) If a fiduciary makes or expects to make a principal disbursement described in Subsection (2), the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or provide a reserve for future principal disbursements. (2) To the […]
Section 506 – Income taxes.
Effective 7/1/2020 22-3-506. Income taxes. (1) A tax required to be paid by a fiduciary that is based on receipts allocated to income shall be paid from income. (2) A tax required to be paid by a fiduciary that is based on receipts allocated to principal shall be paid from principal, even if the tax […]
Section 507 – Adjustment between income and principal because of taxes.
Effective 7/1/2020 22-3-507. Adjustment between income and principal because of taxes. (1) A fiduciary may make an adjustment between income and principal to offset the shifting of economic interests or tax benefits between current income beneficiaries and successor beneficiaries that arises from: (a) an election or decision the fiduciary makes regarding a tax matter, other […]
Section 503 – Transfer from income to principal for depreciation.
Effective 7/1/2020 22-3-503. Transfer from income to principal for depreciation. (1) In this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a tangible asset having a useful life of more than one year. (2) A fiduciary may transfer to principal a reasonable amount of the net […]
Section 504 – Reimbursement of income from principal.
Effective 7/1/2020 22-3-504. Reimbursement of income from principal. (1) If a fiduciary makes or expects to make an income disbursement described in Subsection (2), the fiduciary may transfer an appropriate amount from principal to income in one or more accounting periods to reimburse income. (2) To the extent the fiduciary has not been and does […]
Section 501 – Disbursement from income.
Effective 7/1/2020 22-3-501. Disbursement from income. Subject to Section 22-3-504, and except as otherwise provided in Subsection 22-3-601(3)(b) or (c), a fiduciary shall disburse from income: (1) one-half of: (a) the regular compensation of the fiduciary and any person providing investment advisory, custodial, or other services to the fiduciary, to the extent income is sufficient; […]
Section 502 – Disbursement from principal.
Effective 7/1/2020 22-3-502. Disbursement from principal. (1) Subject to Section 22-3-505, and except as otherwise provided in Subsection 22-3-601(3)(b) or (c), a fiduciary shall disburse from principal: (a) the balance of the disbursements described in Subsections 22-3-501(1) and (3), after application of Subsection 22-3-501(2); (b) the fiduciary’s compensation calculated on principal as a fee for […]