{"data":{"id":"us-sc/s.c.-code-ann.-62-7-928","jurisdiction":"us-sc","citation":"S.C. Code Ann. § 62-7-928","heading":"Future principal disbursements reserves.","body":"(A) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.\n(B) A principal disbursement for purposes of this section includes the following, but only to the extent that the trustee has not been, and does not expect to be, reimbursed by a third party:\n(1) an amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;\n(2) a capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments;\n(3) a disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions;\n(4) a periodic payment on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and\n(5) a disbursement described in Section 62-7-926(A)(7).\n(C) If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection (A).","path":["Title 62 - SOUTH CAROLINA PROBATE CODE","ARTICLE 7 South Carolina Trust Code","Part 9 South Carolina Uniform Principal and Income Act"],"source_url":"https://www.scstatehouse.gov/code/t62c007.php","current_through":"2025 Session of the General Assembly","vintage":"","retrieved_at":"2026-09-02T08:08:54Z","sha256":"167efbf4f9f25d31d3d73c32a8f4b78583f7c92a09749113a11b739497dccd63","source_id":"us-sc","stale":false,"prev":"us-sc/s.c.-code-ann.-62-7-927","next":"us-sc/s.c.-code-ann.-62-7-929"},"notice":"GroundRules: Original legal text. Not legal advice."}