Fla. Stat. § 738.501
Disbursement from income
Redline — January 1, 2012 → current.View current text →
Current — January 1, 2024
As of January 1, 2012
A fiduciary shall allocate to principal:
(1) To the extent not allocated to income under this chapter, assets received from a donor during the donor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payor under a contract naming the trust, estate, or fiduciary as beneficiary.
(2) Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this section.
(3) Amounts recovered from third parties to reimburse the trust or estate because of disbursements described in s. 738.702(1)(g) or for other reasons to the extent not based on the loss of income.
(4) Proceeds of property taken by eminent domain; however, a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income.
(5) Net income received in an accounting period during which there is no beneficiary to whom a fiduciary may or shall distribute income.
(6) Other receipts as provided in ss. 738.601-738.608.
Subject to s. 738.504, and except as otherwise provided in s. 738.601(3)(b) or (c), a fiduciary shall disburse from income:
(1) One-half of:
(a) The regular compensation of the fiduciary and of any person providing investment advisory, custodial, or other services to the fiduciary to the extent that income is sufficient; and
(b) An expense for an accounting, judicial or nonjudicial proceeding, or other matter that involves both income and successive interests to the extent income is sufficient.
(2) The balance of the disbursements described in subsection (1), to the extent that a fiduciary who is an independent person determines that making those disbursements from income would be in the interests of the beneficiaries.
(3) Any other ordinary expense incurred in connection with administration, management, or preservation of property and distribution of income, including interest, an ordinary repair, a regularly recurring tax assessed against principal, and an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily an income interest, to the extent that income is sufficient.
(4) A premium on insurance covering loss of a principal asset or income from or use of the asset.
Official source: Online Sunshine (Florida Legislature). Reproduced from public-domain Florida statutes; confirm against the official source for the current text. Not legal advice.