ARTICLE 5



ALLOCATION
OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST



 



[§557A-501]  Disbursements from income. 
Unless otherwise governed by statutory fees or unless the instrument provides
for it, [a] trustee shall make the following disbursements from income to the
extent that they are not disbursements to which section 557A-201(2)(B) or (C)
applies:



(1)  One-half of the regular compensation of the
trustee and of any person providing investment advisory or custodial services
to the trustee;



(2)  One-half of all expenses for accountings,
judicial proceedings, or other matters that involve both the income and
remainder interests;



(3)  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



(4)  Recurring premiums on insurance covering the loss
of a principal asset or the loss of income from or use of the asset. [L 2000, c
191, pt of §1]