§ 2-3-806 — Determination and distribution of net income

Wyoming § 2-3-806

• Jurisdiction: Wyoming
• Title 02: Wills, Decedents' Estates and Probate Code
• Ch. 3: FIDUCIARIES
• Art. 8: PRINCIPAL AND INCOME

Text

(a) After a decedent dies, in the case of an estate, or
after an income interest in a trust ends, the following rules
apply:
(i) A fiduciary of an estate or of a terminating
income interest shall determine the amount of net income and net
principal receipts received from property specifically given to
a beneficiary under the rules in W.S. 2-3-808 through 2-3-831
which apply to trustees and the rules in paragraph (v) of this
subsection. The fiduciary shall distribute the net income and
net principal receipts to the beneficiary who is to receive the
specific property;
(ii) A fiduciary shall determine the remaining net
income of a decedent's estate or a terminating income interest
under the rules in W.S. 2-3-808 through 2-3-831 which apply to
trustees and by:
(A) Including in net income all income from
property used to discharge liabilities;
(B) Paying from income or principal, in the
fiduciary's discretion, fees of attorneys, accountants and
fiduciaries; court costs and other expenses of administration;
and interest on death taxes, but the fiduciary may pay those
expenses from income of property passing to a trust for which
the fiduciary claims an estate tax marital or charitable
deduction only to the extent that the payment of those expenses
from income will not cause the reduction or loss of the
deduction; and
(C) Paying from principal all other
disbursements made or incurred in connection with the settlement
of a decedent's estate or the winding up of a terminating income
interest, including debts, funeral expenses, disposition of
remains, family allowances and death taxes and related penalties
that are apportioned to the estate or terminating income
interest by the will, the terms of the trust or applicable law.
(iii) A fiduciary shall distribute to a beneficiary
who receives a pecuniary amount outright the interest or any
other amount provided by the will, the terms of the trust, or
applicable law from net income determined under paragraph (ii)
of this subsection or from principal to the extent that net
income is insufficient. If a beneficiary is to receive a
pecuniary amount outright from a trust after an income interest
ends and no interest or other amount is provided for by the
terms of the trust or applicable law, the fiduciary shall
distribute the interest or other amount to which the beneficiary
would be entitled under applicable law if the pecuniary amount
were required to be paid under a will;
(iv) A fiduciary shall distribute the net income
remaining after distributions required by paragraph (iii) of
this subsection in the manner described in W.S. 2-3-807 to all
other beneficiaries, including a beneficiary who receives a
pecuniary amount in trust, even if the beneficiary holds an
unqualified power to withdraw assets from the trust or other
presently exercisable general power of appointment over the
trust;
(v) A fiduciary may not reduce principal or income
receipts from property described in paragraph (i) of this
subsection because of a payment described in W.S. 2-3-826 or
2-3-827 to the extent that the will, the terms of the trust, or
applicable law requires the fiduciary to make the payment from
assets other than the property or to the extent that the
fiduciary recovers or expects to recover the payment from a
third party. The net income and principal receipts from the
property are determined by including all of the amounts the
fiduciary receives or pays with respect to the property, whether
those amounts accrued or became due before, on, or after the
date of a decedent's death or an income interest's terminating
event, and by making a reasonable provision for amounts that the
fiduciary believes the estate or terminating income interest may
become obligated to pay after the property is distributed.