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2024 Florida Statutes

Title XLII ESTATES AND TRUSTS
Chapter 738 UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT Entire Chapter
SECTION 502
Disbursement from principal.
F.S. 738.502
738.502 Disbursement from principal.—
(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:
(a) The balance of the disbursements described in s. 738.501(1) and (3), after application of s. 738.501(2).
(b) The fiduciary’s compensation calculated on principal as a fee for acceptance, distribution, or termination.
(c) A payment of an expense to prepare for or execute a sale or other disposition of property.
(d) A payment on the principal of a trust debt.
(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.
(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.
(g) A payment of estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust.
(h) A payment related to environmental matters including:
1. Reclamation;
2. Assessing environmental conditions;
3. Remedying and removing environmental contamination;
4. Monitoring remedial activities and the release of substances;
5. Preventing future releases of substances;
6. Collecting amounts from persons liable or potentially liable for the costs of the activities described in subparagraphs 1.-5.;
7. Penalties imposed under environmental laws or regulations;
8. Other actions to comply with environmental laws or regulations;
9. Statutory or common law claims by third parties; and
10. Defending claims based on environmental matters.
(i) A payment of a premium for insurance for matters described in paragraph (h).
(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.
History.—s. 1, ch. 2002-42; s. 16, ch. 2012-49; s. 37, ch. 2024-216.