Fla. Stat. § 738.502
Disbursement from principal
Redline — January 1, 2012 → current.View current text →
Current — January 1, 2024
As of January 1, 2012
If a fiduciary accounts for receipts from rental property pursuant to this section, 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, must 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.
(1) Subject to s. 738.505, and except as otherwise provided in s. 738.601(3)(b), a fiduciary shall disburse all of the following from principal:
(a) The balance of the disbursements described in s. 738.501(1) and (3), after application of s. 738.501(2).
(b) The fiduciary’s compensation calculated on principal as a fee for acceptance, distribution, or termination.
(c) A payment of an expense to prepare for or execute a sale or other disposition of property.
(d) A payment on the principal of a trust debt.
(e) A payment of an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily principal, including a proceeding to construe the terms of the trust or protect property.
(f) A payment of a premium for insurance, including title insurance, not described in s. 738.501(4) of which the fiduciary is the owner and beneficiary.
(g) A payment of estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust.
(h) A payment related to environmental matters including:
1. Reclamation;
2. Assessing environmental conditions;
3. Remedying and removing environmental contamination;
4. Monitoring remedial activities and the release of substances;
5. Preventing future releases of substances;
6. Collecting amounts from persons liable or potentially liable for the costs of the activities described in subparagraphs 1.-5.;
7. Penalties imposed under environmental laws or regulations;
8. Other actions to comply with environmental laws or regulations;
9. Statutory or common law claims by third parties; and
10. Defending claims based on environmental matters.
(i) A payment of a premium for insurance for matters described in paragraph (h).
(2) If a principal asset is encumbered with an obligation that requires income from the asset to be paid directly to a creditor, the fiduciary must transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.
Official source: Online Sunshine (Florida Legislature). Reproduced from public-domain Florida statutes; confirm against the official source for the current text. Not legal advice.