§ 2-3-829 — Transfers from income to reimburse principal

(a) If a trustee makes or expects to make a principal
disbursement described in this section, the trustee may transfer
an appropriate amount from income to principal in one (1) or
more accounting periods to reimburse principal or to provide a
reserve for future principal disbursements.
(b) Principal disbursements to which subsection (a) of
this section applies include the following, but only to the
extent that the trustee has not been and does not expect to be
reimbursed by a third party:
(i) An amount chargeable to income but paid from
principal because it is unusually large, including extraordinary
repairs;
(ii) A capital improvement to a principal asset,
whether in the form of changes to an existing asset or the
construction of a new asset, including special assessments;
(iii) Disbursements made to prepare property for
rental, including tenant allowances, leasehold improvements and
broker's commissions;
(iv) Periodic payments on an obligation secured by a
principal asset to the extent that the amount transferred from
income to principal for depreciation is less than the periodic
payments; and
(v) Disbursements described in W.S. 2-3-827(a)(vii).
(c) If the asset whose ownership gives rise to the
disbursements becomes subject to a successive income interest
after an income interest ends, a trustee may continue to
transfer amounts from income to principal as provided in
subsection (a) of this section.