N.Y. Estates, Powers & Trusts Law § 11-a-4.3: Business and other activities conducted by trustee

§ 11-A-4.3 Business and other activities conducted by trustee

(a) If a trustee who conducts a business or other activity determines

that it is in the best interest of all the beneficiaries to account

separately for the business or activity instead of accounting for it as

part of the trust's general accounting records, the trustee may maintain

separate accounting records for its transactions, whether or not its

assets are segregated from other trust assets.

(b) A trustee who accounts separately for a business or other activity

may determine the extent to which its net cash receipts must be retained

for working capital, the acquisition or replacement of fixed assets, and

other reasonably foreseeable needs of the business or activity, and the

extent to which the remaining net cash receipts are accounted for as

principal or income in the trust's general accounting records. If a

trustee sells assets of the business or other activity, other than in

the ordinary course of the business or activity, the trustee shall

account for the net amount received as principal in the trust's general

accounting records to the extent the trustee determines that the amount

received is no longer required in the conduct of the business.

(c) Activities for which a trustee may maintain separate accounting

records include:

(1) retail, manufacturing, service, and other traditional business

activities;

(2) farming;

(3) raising and selling livestock and other animals;

(4) management of rental properties;

(5) extraction of minerals and other natural resources;

(6) timber operations; and

(7) activities to which 11-A-4.14 applies.