{"data":{"id":"us-ut/utah-code-75a-5-505","jurisdiction":"us-ut","citation":"Utah Code § 75A-5-505","heading":"Reimbursement of principal from income.","body":"(1) If a fiduciary makes or expects to make a principal disbursement described in Subsection (2), 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(2) To the extent that a fiduciary has not been and does not expect to be reimbursed by a third party, principal disbursements to which Subsection (1) applies include:\n(a) an amount chargeable to income but paid from principal because income is not sufficient;\n(b) the cost of an improvement to principal, regardless of whether the improvement is a change to an existing asset or the construction of a new asset, including a special assessment;\n(c) a disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions;\n(d) 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 payment; and\n(e) a disbursement described in Subsection 75A-5-502(1).\n(3) 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 Subsection (1).","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-S505.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:34Z","sha256":"ce1228073d4192bfd7941c544890d0ab8a52d4c605ba750197cccbe827ae5517","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-75a-5-504","next":"us-ut/utah-code-75a-5-506"},"notice":"GroundRules: Original legal text. Not legal advice."}