New Hampshire § 564-C:5-502 Disbursements from Principal

New Hampshire Statutes

§ 564-C:5-502 — Disbursements from Principal

New Hampshire § 564-C:5-502

Title LVIPROBATE COURTS AND DECEDENTS' ESTATES

Ch. 564-CUNIFORM PRINCIPAL AND INCOME ACT

SubdivisionARTICLE 5ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST

This text of New Hampshire § 564-C:5-502 (Disbursements from Principal) is published on Counsel Stack Legal Research, covering New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.H. Rev. Stat. Ann. § 564-C:5-502 (2026).

Text

(a)A trustee shall make the following disbursements from principal:

(1)Such of the disbursements described in paragraph (a) of RSA 564-C:5-501 as are not charged to income;

(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 RSA 564-C:5-501(4) 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

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(a) A trustee shall make the following disbursements from principal:
(1) Such of the disbursements described in paragraph (a) of RSA 564-C:5-501 as are not charged to income;
(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 RSA 564-C:5-501(4) 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.