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Utah Code § 75A-5-410

Receipts normally apportioned -- Liquidating asset

Renumbered and Amended by Chapter 364, 2024 General Session

(1) As used in this section:

(a) "Liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a limited time.

(b) "Liquidating asset" includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance.

(2) This section does not apply to a receipt subject to Section 75A-5-401, 75A-5-409, 75A-5-411, 75A-5-412, 75A-5-414, 75A-5-415, 75A-5-416, or 75A-5-503.

(3) A fiduciary shall allocate:

(a) to income:

(i) a receipt produced by a liquidating asset, to the extent the receipt does not exceed 3% of the value of the asset; or

(ii) if the fiduciary cannot determine the value of the asset, 10% of the receipt; and

(b) to principal, the balance of the receipt.

Official source: Utah State Legislature. Reproduced from public-domain Utah statutes; confirm against the official source for the current text. Not legal advice.