(1) A fiduciary shall make the following disbursements from principal:
(a) The remaining one-half of the disbursements described in s. 738.701(1) and (2).
Terms Used In Florida Statutes 738.702
- Beneficiary: means , in the case of a decedent's estate, an heir or devisee and, in the case of a trust, an income beneficiary or a remainder beneficiary. See N.Y. Public Health Law 3428 - Funeral Directing; Registration of Licenses; Fees
- Fiduciary: means a personal representative or a trustee. See N.Y. Public Health Law 3428 - Funeral Directing; Registration of Licenses; Fees
- Income: means money or property that a fiduciary receives as current return from a principal asset. See N.Y. Public Health Law 3428 - Funeral Directing; Registration of Licenses; Fees
- Principal: means property held in trust for distribution to a remainder beneficiary when the trust terminates. See N.Y. Public Health Law 3428 - Funeral Directing; Registration of Licenses; Fees
- Trustee: includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court. See N.Y. Public Health Law 3428 - Funeral Directing; Registration of Licenses; Fees
(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.