§ 9:2156 — Charges

Louisiana § 9:2156

• Jurisdiction: Louisiana
• Title 9: Civil Code-Ancillaries

Text

§2156. Charges
A. The following charges shall be made against income:
(1) Ordinary expenses incurred or accrued in connection with the administration,
management, or preservation of the trust property.
(2) One-half of court costs, attorney fees, and other fees on periodic accounting,
unless the court directs otherwise.
(3) Court costs, attorney fees, and other fees on other accountings or judicial
proceedings if the matter primarily concerns the income interest, unless the court directs
otherwise.
(4) One-half of the trustee's regular compensation, whether based on a percentage
of principal or income.
(5) Expenses reasonably incurred by the trustee for the management and application
of income.
(6) Interest accrued on an indebtedness.
B. If charges against income are of unusual amount, the trustee may by means of
reserves or other reasonable means charge them over a reasonable period and withhold from
distribution sums sufficient to produce substantial regularity in distributions.
C. The following charges shall be made against principal:
(1) Extraordinary expenses incurred or accrued in connection with the
administration, management, or preservation of the trust property.
(2) Expenses incurred in making a capital improvement to principal, including
special taxes and assessments.
(3) Expenses incurred in investing and reinvesting principal.
(4) One-half of court costs, attorney fees, and other fees on periodic accounting,
unless the court directs otherwise.
(5) Court costs, attorney fees, and other fees on other accountings or judicial
proceedings if the matter primarily concerns the principal interest, unless the court directs
otherwise.
(6) Expenses incurred in maintaining or defending an action to construe the trust or
to protect the trust or the trust property.
(7) One-half of the trustee's regular compensation, whether based on a percentage
of principal or income.
(8) All the trustee's special compensation.
(9) The amount of an estate tax apportioned to the trust, including interest and
penalties.
(10) The principal of an indebtedness.
D. If the payment of special taxes and assessments produces an addition to the value
of the trust property, the trustee shall reserve out of income and add to principal a reasonable
allowance for the depreciation of the improvement under generally accepted accounting
principles, although the improvement was not made directly to the trust property.
E. Regularly recurring charges shall be apportioned to the same extent and in the
same manner that receipts are apportioned under R.S. 9:2145 through 2147.

Legislative History

Acts 2010, No. 175, §2; Acts 2020, No. 17, §1, eff. Jan. 1, 2021.