{"data":{"id":"us-fl/fla.-stat.-738.502","jurisdiction":"us-fl","citation":"Fla. Stat. § 738.502","heading":"Disbursement from principal.","body":"(1) Subject to s. 738.505, and except as otherwise provided in s. 738.601(3)(b), a fiduciary shall disburse all of the following from principal:\n(a) The balance of the disbursements described in s. 738.501(1) and (3), after application of s. 738.501(2).\n(b) The fiduciary’s compensation calculated on principal as a fee for acceptance, distribution, or termination.\n(c) A payment of an expense to prepare for or execute a sale or other disposition of property.\n(d) A payment on the principal of a trust debt.\n(e) A payment of an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily principal, including a proceeding to construe the terms of the trust or protect property.\n(f) A payment of a premium for insurance, including title insurance, not described in s. 738.501(4) of which the fiduciary is the owner and beneficiary.\n(g) A payment of estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust.\n(h) A payment related to environmental matters including:\n1. Reclamation;\n2. Assessing environmental conditions;\n3. Remedying and removing environmental contamination;\n4. Monitoring remedial activities and the release of substances;\n5. Preventing future releases of substances;\n6. Collecting amounts from persons liable or potentially liable for the costs of the activities described in subparagraphs 1.-5.;\n7. Penalties imposed under environmental laws or regulations;\n8. Other actions to comply with environmental laws or regulations;\n9. Statutory or common law claims by third parties; and\n10. Defending claims based on environmental matters.\n(i) A payment of a premium for insurance for matters described in paragraph (h).\n(2) If a principal asset is encumbered with an obligation that requires income from the asset to be paid directly to a creditor, the fiduciary must transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.\nHistory.—s. 1, ch. 2002-42; s. 16, ch. 2012-49; s. 37, ch. 2024-216.","path":["CHAPTER 738 UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT"],"source_url":"https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute\u0026URL=0700-0799/0738/0738.html","current_through":"2026 Florida Statutes","vintage":"","retrieved_at":"2026-08-27T02:13:31Z","sha256":"6935dbdb4be764fde837a7a2ce781f79f61b7dd2c433b2b184eddac9d122a5e6","source_id":"us-fl","stale":false,"prev":"us-fl/fla.-stat.-738.501","next":"us-fl/fla.-stat.-738.503"},"notice":"GroundRules: Original legal text. Not legal advice."}