{"data":{"id":"us-ca/prob-16364","jurisdiction":"us-ca","citation":"PROB § 16364","heading":"","body":"(a) If a fiduciary makes or expects to make a principal disbursement described in subdivision (b), the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or provide a reserve for future principal disbursements.\n(b) To the extent a fiduciary has not been, and does not expect to be, reimbursed by a third party, principal disbursements to which subdivision (a) applies include all of the following:\n(1) An amount chargeable to income but paid from principal because income is not sufficient.\n(2) The cost of an improvement to principal, whether a change to an existing asset or the construction of a new asset, including a special assessment.\n(3) A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions.\n(4) A periodic payment on an obligation secured by a principal asset, to the extent the amount transferred from income to principal for depreciation is less than the periodic payment.\n(5) A disbursement described in subdivision (a) of Section 16361.\n(c) If an asset whose ownership gives rise to a principal disbursement becomes subject to a successive interest after an income interest ends, the fiduciary may continue to make transfers under subdivision (a).","path":["Probate Code - PROB","DIVISION 9. TRUST LAW [15000. - 19530.]","PART 4. TRUST ADMINISTRATION [16000. - 16632.]","CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320. - 16383.]","ARTICLE 5. Allocation of Disbursements [16360. - 16367.]"],"source_url":"https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zip","current_through":"2026-09-13","vintage":"","retrieved_at":"2026-09-14T05:56:33Z","sha256":"fa98e34be4e90a0ec0fe25caa243528ce483e9cf4e11acc72cc529fb6334964a","source_id":"us-ca","stale":false,"prev":"us-ca/prob-16363","next":"us-ca/prob-16365"},"notice":"GroundRules: Original legal text. Not legal advice."}