{"data":{"id":"us-ky/krs-386.496","jurisdiction":"us-ky","citation":"KRS 386.496","heading":"Transfers from income to reimburse principal.","body":"(1) If a trustee makes or expects to make a principal disbursement described in this\nsection, the trustee may transfer an appropriate amount from income to principal in\none (1) or more accounting periods to reimburse principal or to provide a reserve\nfor future principal disbursements.\n(2) Principal disbursements to which subsection (1) of this section applies include the\nfollowing, but only to the extent that the trustee has not been and does not expect to\nbe reimbursed by a third party:\n(a) An amount chargeab le to income but paid from principal because it is\nunusually large, including extraordinary repairs;\n(b) A capital improvement to a principal asset, whether in the form of changes to\nan existing asset or the construction of a new asset, including special\nassessments;\n(c) Disbursements made to prepare property for rental, including tenant\nallowances, leasehold improvements, and broker's commissions;\n(d) Periodic payments on an obligation secured by a principal asset to the extent\nthat the amount transferred from income to principal for depreciation is less\nthan the periodic payments; and\n(e) Disbursements described in KRS 386.492(1)(g).\n(3) If the asset whose ownership gives rise to the disbursements becomes subject to a\nsuccessive income interest after an in come interest ends, a trustee may continue to\ntransfer amounts from income to principal as provided in subsection (1) of this\nsection.","path":["KRS Chapter 386"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35940","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:16Z","sha256":"ba4773776ee98ea10d309f27bb031f7ee7d4fd86046c7fdbf68748e64bde3243","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386.494","next":"us-ky/krs-386.498"},"notice":"GroundRules: Original legal text. Not legal advice."}