Terms Used In Florida Statutes 738.702

  • administrator: A male person appointed by the court to administer the estate of a deceased person who (1) dies leaving no will, or (2) leaves a will naming an executor or executors who for some reason cannot serve. The functions of an administrator are to collect assets of the estate, pay debts, and distribute residue to those entitled to it.
  • assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
  • fiduciary: means a personal representative or a trustee. See Florida Statutes 738.102
  • income: means money or property that a fiduciary receives as current return from a principal asset. See Florida Statutes 738.102
  • obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • principal: means property held in trust for distribution to a remainder beneficiary when the trust terminates. See Florida Statutes 738.102
  • trustee: includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court. See Florida Statutes 738.102

(1) A assets of the estate, pay debts, and distribute residue to those entitled to it.”>administrator.”>fiduciary shall make the following disbursements from principal:(a) The remaining one-half of the disbursements described in s. 738.701(1) and (2).(b) 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.(c) Payments on the principal of a trust debt.(d) Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or will, or to protect the trust, estate, or its property.(e) Premiums paid on a policy of insurance not described in s. 738.701(4) of which the trust or estate is the owner and beneficiary.(f) Estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust.(g) 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 such 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.(h) Payments representing extraordinary repairs or expenses incurred in making a capital improvement to principal, including special assessments; however, a fiduciary may establish an allowance for depreciation out of income to the extent permitted by s. 738.703.(2) 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.