{"data":{"id":"us-ut/utah-code-75a-5-502","jurisdiction":"us-ut","citation":"Utah Code § 75A-5-502","heading":"Disbursement from principal.","body":"(1) Subject to Section 75A-5-505, and except as otherwise provided in Subsection 75A-5-601(3)(b) or (c), a fiduciary shall disburse from principal:\n(a) the balance of the disbursements described in Subsections 75A-5-501(1) and (3), after application of Subsection 75A-5-501(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 Subsection 75A-5-501(4), of which the fiduciary is the owner and beneficiary;\n(g) a payment of an estate or inheritance tax or other tax imposed because of the death of a decedent, including penalties, apportioned to the trust; and\n(h) a payment:\n(i) related to environmental matters, including:\n(A) reclamation;\n(B) assessing environmental conditions;\n(C) remedying and removing environmental contamination;\n(D) monitoring remedial activities and the release of substances;\n(E) preventing future releases of substances;\n(F) collecting amounts from persons liable or potentially liable for the costs of activities described in Subsections (1)(h)(i)(A) through (E);\n(G) penalties imposed under environmental laws or regulations;\n(H) other actions to comply with environmental laws or regulations;\n(I) statutory or common law claims by third parties; and\n(J) defending claims based on environmental matters; and\n(ii) for a premium for insurance for matters described in Subsection (1)(h)(i).\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 shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.","path":["Title 75A Fiduciaries","Chapter 75A-5 Uniform Fiduciary Income and Principal Act","Part 75A-5-5 Allocation of Disbursements"],"source_url":"https://le.utah.gov/xcode/Title75A/Chapter5/75A-5-S502.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:34Z","sha256":"3485d571f47e7cf7563f270886b5247dbad1a3c983f2d8b76be1e99538c91768","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-75a-5-501","next":"us-ut/utah-code-75a-5-503"},"notice":"GroundRules: Original legal text. Not legal advice."}