§ 30-2-14-25 — Separate accounting records for business or activity

Indiana § 30-2-14-25

• Jurisdiction: Indiana
• Art. 2: GENERAL PROVISIONS
• Ch. 14: Uniform Principal and Income Act

Text

(a) If a trustee who conducts a business or
other activity determines that it is in the best interest of all the
beneficiaries to account separately for the business or activity instead
of accounting for it as part of the trust's general accounting records, the
trustee may maintain separate accounting records for its transactions,
whether or not its assets are segregated from other trust assets.
(b) A trustee who accounts separately for a business or other activity
may determine the extent to which:
(1) its net cash receipts must be retained for:
(A) working capital;
(B) the acquisition or replacement of fixed assets; and
(C) other reasonably foreseeable needs of the business or
activity; and
(2) the remaining net cash receipts are accounted for as principal
or income in the trust's general accounting records.
If a trustee sells assets of the business or other activity, other than in the
ordinary course of the business or activity, the trustee shall account for
the net amount received as principal in the trust's general accounting
records to the extent the trustee determines that the amount received is
no longer required in the conduct of the business.
(c) Activities for which a trustee may maintain separate accounting
records include:
(1) retail, manufacturing, service, and other traditional business
activities;
(2) farming;
(3) raising and selling livestock and other animals;
(4) management of rental properties;
(5) extraction of minerals and other natural resources;
(6) timber operations; and
(7) activities to which section 36 of this chapter applies.

Legislative History

As added by P.L.84-2002, SEC.2.