§ 2-3-827 — Disbursements from principal

Wyoming § 2-3-827

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

Text

(a) A trustee shall make the following disbursements from
principal:
(i) Extraordinary expenses incurred in connection
with the administration, management or preservation of trust
property and the distribution of income;
(ii) Extraordinary repairs;
(iii) Repealed by Laws 2015, ch. 79, § 3.
(iv) Expenses in connection with accountings and
judicial or other proceedings to construe, modify or reform the
trust or to protect the trust or its property;
(v) Premiums paid on a policy of insurance not
described in W.S. 2-3-826(a)(iv) of which the trust is the owner
and beneficiary;
(vi) Estate, inheritance and other transfer taxes,
including penalties, apportioned to the trust; and
(vii) 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.