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19-3A-413
Section 19-3A-413 Property not productive of income. (a) If a marital deduction is allowed
for all or part of a trust whose assets consist substantially of property that does not provide
the spouse with sufficient income from or use of the trust assets, and if the amounts that
the fiduciary transfers from principal to income pursuant to Section 19-3A-104, if applicable,
and distributes to the spouse from principal pursuant to the terms of the trust are insufficient
to provide the spouse with the beneficial enjoyment required to obtain the marital deduction,
then the spouse may require the fiduciary (1) to make property productive of income, (2) to
convert property within a reasonable time or (3) to exercise the power conferred by Section
19-3A-104(a), if applicable. The fiduciary may decide which action or combination of actions
to take. (b) In cases not governed by subsection (a), a fiduciary shall allocate to principal
the proceeds from the sale or other disposition of an asset...
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19-3A-405
Section 19-3A-405 Rental property. To the extent the fiduciary does not account for receipts
from rental property pursuant to Section 19-3A-403, the fiduciary shall allocate to income
an amount received as rent of real or personal property, including an amount received
for cancellation or renewal of a lease. An amount received as a refundable deposit, including
a security deposit or a deposit that is to be applied as rent for future periods, shall be
added to principal and held subject to the terms of the lease and is not available for distribution
to a beneficiary until the fiduciary's contractual obligations have been satisfied with respect
to that amount. (Act 2000-675, p. 1343, §1.)...
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19-3A-505
Section 19-3A-505 Income taxes. (a) A tax required to be paid by a fiduciary based on receipts
allocated to income shall be paid from income. (b) 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. (c) A tax required to be paid by a fiduciary
on the trust's share of an entity's taxable income shall be paid as follows: (1) From income
to the extent that receipts from the entity are allocated only to income; (2) From principal
to the extent that receipts from the entity are allocated only to principal; (3) Proportionately
from principal and income to the extent that receipts from the entity are allocated to both
income and principal; and (4) From principal to the extent that the tax exceeds the total
receipts from the entity. (d) After applying subsections (a) through (c), the fiduciary shall
adjust income or principal receipts to the extent that the trust's taxes...
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19-3B-813
liabilities, receipts, and disbursements, including the source and amount of the trustee's
compensation, a listing of the trust assets and, if feasible, their respective market values,
and, upon termination of the trust, a final report commencing with the date of the most recent
annual report through the last transaction of the trust. Upon a vacancy in a trusteeship,
unless a co-trustee remains in office, a report must be sent to the qualified beneficiaries
by the former trustee. A personal representative, conservator, or guardian may send
the qualified beneficiaries a report on behalf of a deceased or incapacitated trustee. (d)
A beneficiary may waive the right to a trustee's report or other information otherwise required
to be furnished under this section. A beneficiary, with respect to future reports and other
information, may withdraw a waiver previously given. (e) Subsection (b)(2) and subsection
(b)(3) shall apply only to trustees who accept a trusteeship on or after...
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19-3A-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 fiduciary may transfer from
income to principal a reasonable amount of the net cash receipts from a principal asset that
is subject to depreciation, but may not transfer any amount for depreciation in any of the
following circumstances: (1) As to the portion of a. real property used or available for use
by a beneficiary as a residence or b. tangible personal property held or made available
for the personal use or enjoyment of a beneficiary; (2) During the administration of
a decedent's estate; or (3) If the fiduciary is accounting separately for the business or
activity in which the asset is used, pursuant to Section 19-3A-403. (c) An amount transferred
from income to principal need not be held as a separate fund. (Act 2000-675, p. 1343, §1.)...
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19-3A-406
Section 19-3A-406 Bonds and other obligations. (a) An amount received as interest, whether
determined at a fixed, variable, or floating rate, on a bond or an obligation to pay money
to the fiduciary shall be allocated to income. (b) Except as provided for in subsection (c)
and subsection (d), a fiduciary shall allocate to principal any gain or loss realized upon
the sale or maturity of any bond or obligation to pay money to the fiduciary, regardless of
how such bond or other obligation was acquired. (c) A fiduciary shall allocate to income the
difference between inventory value or cost, and the amount realized upon sale or maturity,
if greater, for bonds or other obligations that do not bear interest, regardless of how or
when such bond or other obligation was acquired. (d) For bonds or other obligations that are
acquired by a fiduciary subsequent to the time the principal was established and whose cost
is greater than their par or maturity value, the fiduciary shall amortize...
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19-5-6
Section 19-5-6 Division of qualified terminable interest property trust into separate share
trusts to effectuate allocation of grantor's, decedent's, or surviving spouse's GST exemption;
payment of estate taxes. When a grantor or decedent transfers property into a trust for which
an election is made or to be made pursuant to Section 2056(b)(7) or 2523(f) of the Internal
Revenue Code to treat such property as qualified terminable interest property (the "QTIP
trust"), and when a grantor or fiduciary makes an election pursuant to Section 2652(a)(3)
of the Internal Revenue Code to have the grantor or decedent creating such QTIP trust deemed
to be the transferor of a portion, but not all, of such QTIP trust for GST purposes, and when
a grantor or fiduciary makes an allocation pursuant to Section 2631 of the Internal Revenue
Code of any portion of such grantor's or decedent's GST exemption to such portion of the QTIP
trust for which a Section 2652(a)(3) election is made or to be made, or to...
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2-6-118
Section 2-6-118 Trust fund. For the purpose of providing funds for the payment of the principal
of and interest on the bonds issued by the corporation under this article, there is created
and irrevocably pledged to the payment of such obligations a special and continuing trust
fund which shall consist of all receipts, revenues, and income that are derived or received
by the corporation from the leasing or operation of the project and that remain after payment
of the costs of maintaining and insuring the project. All such moneys shall be deposited into
the fund upon receipt, and held until applied for the payment of bonds of the corporation.
(Act 2011-575, p. 1231, §20.)...
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19-3B-103
which is exercisable by another person only upon consent of the trustee or a person holding
an adverse interest. (12) PRESUMPTIVE REMAINDER BENEFICIARY means a person who would be entitled
to the principal of a trust if the income interest were immediately terminated, and if a trust
contains a power of appointment, then the holder of such power of appointment shall also be
a presumptive remainder beneficiary. (13) PROPERTY means anything that may be the subject
of ownership, whether real or personal, legal or equitable, or any interest therein.
Property includes choses in action, claims, and interests created by beneficiary designation
under policies of insurance, financial instruments and deferred compensation and other retirement
arrangements, whether revocable or irrevocable. (14) QUALIFIED BENEFICIARY means a living
beneficiary who, on the date the beneficiary's qualification is determined: (A) is a distributee
or permissible distributee of trust income or principal; (B) would be a...
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19-3A-604
Section 19-3A-604 Application to existing trusts and estates. This chapter shall become applicable
on January 1, 2001, to every trust and decedent's estate already in existence on January 1,
2001, and to every testamentary trust to be created on or after January 1, 2001, from a decedent's
estate that is already in existence on January 1, 2001; provided, however, at any time prior
to January 1, 2003, any such pre-existing trust or decedent's estate (or testamentary trust
to be created from a pre-existing estate) shall have the right to elect to continue operating
under the law in effect prior to this chapter. Any fiduciary, income beneficiary, or presumptive
remainder beneficiary of an affected trust or estate shall have the right to make the election
to continue operating under the law in effect prior to this chapter, which election shall
be made by a written instrument delivered to, or executed by, the fiduciary and placed with
the fiduciary's records. The decision of whether to make...
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