§ 15-1.2-504 — Reimbursement of income from principal

Colorado § 15-1.2-504

• Jurisdiction: Colorado
• Title 15: Probate,
• Art.: Uniform Fiduciary Income and Principal Act

Text

(1) If a fiduciary
makes or expects to make an income disbursement described in subsection (2) of
this section, the fiduciary may transfer an appropriate amount from principal to
income in one or more accounting periods to reimburse income.

(2) To the extent the fiduciary has not been and does not expect to be
reimbursed by a third party, income disbursements to which subsection (1) of this
section 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 section 15-1.2-502 (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) of this section.

Legislative History

Source: L. 2021: Entire article added, (SB 21-171), ch. 143, p. 833, � 1, effective January 1, 2022.