§ 30-2-14-39 — Disbursements from principal

Indiana § 30-2-14-39

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

Text

(a) A trustee shall make the following
disbursements from principal:
(1) the remaining one-half (1/2) of the disbursements described
in section 38(1) and 38(2) of this chapter;
(2) all of the trustee's compensation calculated on principal as a
fee for acceptance, distribution, or termination, and disbursements
made to prepare property for sale;
(3) payments on the principal of a trust debt;
(4) expenses of a proceeding that concerns primarily principal,
including a proceeding to construe the trust or to protect the trust
or its property;
(5) premiums paid on a policy of insurance not described in
section 38(4) of this chapter of which the trust is the owner and
beneficiary;
(6) estate, inheritance, and other transfer taxes, including
penalties, apportioned to the trust; and
(7) disbursements related to environmental matters, including
reclamation, assessing environmental conditions, remedying and
removing environmental contamination, monitoring remedial
activities and the release of substances, preventing future releases
of substances, collecting amounts from persons liable or
potentially liable for the costs of those activities, penalties
imposed under environmental laws or regulations and other
payments made to comply with those laws or regulations,
statutory or common law claims by third parties, and defending
claims based on environmental matters.
(b) If a principal asset is encumbered with an obligation that
requires income from that asset to be paid directly to the creditor, the
trustee shall transfer from principal to income an amount equal to the
income paid to the creditor in reduction of the principal balance of the
obligation.

Legislative History

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