Fla. Stat. § 738.504
Reimbursement of income from principal
Redline — January 1, 2011 → current.View current text →
Current — January 1, 2024
As of January 1, 2011
(1) Except as otherwise provided in subsection (2), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income and to principal if the premiums are paid from principal.
(2) A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to s. 738.403, loss of profits from a business.
(3) This section does not apply to a contract to which s. 738.602 applies.
(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 that the fiduciary has not been and does not expect to be reimbursed by a third party, income disbursements to which subsection (1) applies include:
(a) An amount chargeable to principal but paid from income because principal is illiquid;
(b) A disbursement made to prepare property for sale, including improvements and commissions; and
(c) A disbursement described in s. 738.502(1).
(3) If an asset whose ownership gives rise to an income disbursement becomes subject to a successive interest after an income interest ends, the fiduciary may continue to make transfers under subsection (1).
Official source: Online Sunshine (Florida Legislature). Reproduced from public-domain Florida statutes; confirm against the official source for the current text. Not legal advice.