Oregon Statutes 129.400 – UPIA 501. Disbursements from income
(1) A trustee shall make the following disbursements from income to the extent that they are not disbursements to which ORS § 129.250 (2)(b) or (c) applies:
Terms Used In Oregon Statutes 129.400
- 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
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Revocable trust: A trust agreement that can be canceled, rescinded, revoked, or repealed by the grantor (person who establishes the trust).
- Trustee: A person or institution holding and administering property in trust.
(a) Except as provided in subsection (2) of this section, one-half of the regular compensation of the trustee;
(b) Except as provided in subsection (2) of this section, one-half of the regular compensation of any person providing investment advisory or custodial services to the trustee;
(c) One-half of all expenses for accountings, judicial proceedings or other matters that involve both the income and remainder interests;
(d) All of the other ordinary expenses incurred in connection with the administration, management or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal and expenses of a proceeding or other matter that concerns primarily the income interest; and
(e) Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.
(2)(a) If, in the reasonable judgment of the trustee, charging all or a part of the trustee’s regular compensation or the regular compensation of any person providing investment advisory or custodial services to the trustee to principal is impracticable because of lack of sufficient cash and readily marketable assets or inadvisable because of the nature of the principal assets, the trustee may pay all or part of the trustee’s regular compensation or the regular compensation of any person providing investment advisory or custodial services to the trustee out of income. Income of the trust is not entitled to reimbursement from principal for payments under this paragraph.
(b) If, in the reasonable judgment of the trustee, charging all or part of the trustee’s regular compensation or the regular compensation of any person providing investment advisory or custodial services to the trustee to income is impracticable because of the lack of sufficient income, or in order to provide increased income to the beneficiary, the trustee may pay all or part of the trustee’s regular compensation or the regular compensation of any person providing investment advisory or custodial services to the trustee out of principal.
(3) Notwithstanding subsection (1) of this section, during the lifetime of the settlor of a revocable trust, the trustee may charge trust expenses, including the trustee’s compensation, as directed by the settlor. [2003 c.279 § 25; 2017 c.81 § 1]