§ 19-3A-501 — Disbursements from Income

Alabama § 19-3A-501

• Jurisdiction: Alabama
• Title 19: Fiduciaries and Trusts
• Ch. 3A: Alabama Principal and Income Act
• Art. 5: Allocation of Disbursements During Administration of Trust or Decendent’s Estate

Text

A trustee shall make the following disbursements from income to the extent that they are not disbursements to which Section 19-3A-201(c)(2) or Section 19-3A-201(c)(3) applies:
(a) All of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee, to the extent not charged to principal pursuant to Section 19-3A-502(a)(1);
(b) All expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests, to the extent not charged to principal pursuant to Section 19-3A-502(a)(1);
(c) All of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest;
(d) All recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset; and
(e) All disbursements related to environmental matters, to the extent not charged to principal pursuant to Section 19-3A-502(c).

Legislative History

(Act 2000-675, p. 1343, §1.)