Part 5.--ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST
Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)
58-9-504.Transfers from income to reimburseprincipal.(a) If a trustee makes or expects to make a principaldisbursementdescribedin this section, the trustee may transfer an appropriate amount from income toprincipal in one or more accounting periods to reimburse principal or toprovide areserve for future principal disbursements.
(b) Principal disbursements to which subsection (a) applies include thefollowing, but only to the extent that the trustee has not been and does notexpect tobe reimbursed by a third party:
(1) An amount chargeable to income but paid from principal because it isunusually large, including extraordinary repairs;
(2) a capital improvement to a principal asset, whether in the form ofchanges to an existing asset or the construction of a new asset, includingspecialassessments;
(3) disbursements made to prepare property for rental, including tenantallowances, leasehold improvements, and broker's commissions;
(4) periodic payments on an obligation secured by a principal asset tothe extent that the amount transferred from income to principal fordepreciation isless than the periodic payments; and
(5) disbursements described in subsection (a)(7) of K.S.A. 58-9-502 andamendmentsthereto.
(c) If the asset whose ownership gives rise to the disbursements becomessubject to a successive income interest after an income interest ends, atrustee maycontinue to transfer amounts from income to principal as provided in subsection(a).
Part 5.--ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST
Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)
58-9-504.Transfers from income to reimburseprincipal.(a) If a trustee makes or expects to make a principaldisbursementdescribedin this section, the trustee may transfer an appropriate amount from income toprincipal in one or more accounting periods to reimburse principal or toprovide areserve for future principal disbursements.
(b) Principal disbursements to which subsection (a) applies include thefollowing, but only to the extent that the trustee has not been and does notexpect tobe reimbursed by a third party:
(1) An amount chargeable to income but paid from principal because it isunusually large, including extraordinary repairs;
(2) a capital improvement to a principal asset, whether in the form ofchanges to an existing asset or the construction of a new asset, includingspecialassessments;
(3) disbursements made to prepare property for rental, including tenantallowances, leasehold improvements, and broker's commissions;
(4) periodic payments on an obligation secured by a principal asset tothe extent that the amount transferred from income to principal fordepreciation isless than the periodic payments; and
(5) disbursements described in subsection (a)(7) of K.S.A. 58-9-502 andamendmentsthereto.
(c) If the asset whose ownership gives rise to the disbursements becomessubject to a successive income interest after an income interest ends, atrustee maycontinue to transfer amounts from income to principal as provided in subsection(a).
Part 5.--ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST
Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)
58-9-504.Transfers from income to reimburseprincipal.(a) If a trustee makes or expects to make a principaldisbursementdescribedin this section, the trustee may transfer an appropriate amount from income toprincipal in one or more accounting periods to reimburse principal or toprovide areserve for future principal disbursements.
(b) Principal disbursements to which subsection (a) applies include thefollowing, but only to the extent that the trustee has not been and does notexpect tobe reimbursed by a third party:
(1) An amount chargeable to income but paid from principal because it isunusually large, including extraordinary repairs;
(2) a capital improvement to a principal asset, whether in the form ofchanges to an existing asset or the construction of a new asset, includingspecialassessments;
(3) disbursements made to prepare property for rental, including tenantallowances, leasehold improvements, and broker's commissions;
(4) periodic payments on an obligation secured by a principal asset tothe extent that the amount transferred from income to principal fordepreciation isless than the periodic payments; and
(5) disbursements described in subsection (a)(7) of K.S.A. 58-9-502 andamendmentsthereto.
(c) If the asset whose ownership gives rise to the disbursements becomessubject to a successive income interest after an income interest ends, atrustee maycontinue to transfer amounts from income to principal as provided in subsection(a).
