22-3-408. Receipts normally apportioned — Insubstantial allocation not required.
(1)
If a fiduciary determines that an allocation between income and principal required by Section 22-3-409, 22-3-410, 22-3-411, 22-3-412, or 22-3-415 is insubstantial, the fiduciary may allocate the entire amount to principal, unless Subsection 22-3-203(5) applies to the allocation.
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Terms Used In Utah Code 22-3-408
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
Fiduciary: A trustee, executor, or administrator.
(2)
A fiduciary may presume an allocation is insubstantial under Subsection (1) if:
(a)
the amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10%; and
(b)
the asset producing the receipt to be allocated has a fair market value less than 10% of the total fair market value of the assets owned or held by the fiduciary at the beginning of the accounting period.
(3)
The power to make a determination under Subsection (1) may be:
(a)
exercised by a co-fiduciary in the manner described in Subsection 22-3-203(6); or
(b)
released or delegated for a reason described in Subsection 22-3-203(7) and in the manner described in Subsection 22-3-203(8).
Repealed and Re-enacted by Chapter 495, 2019 General Session
