Skip to Navigation | Skip to Main Content | Skip to Site Map

MyFloridaHouse.gov | Mobile Site

Senate Tracker: Sign Up | Login

The Florida Senate

2024 Florida Statutes

Title XLII ESTATES AND TRUSTS
Chapter 738 UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT Entire Chapter
SECTION 505
Reimbursement of principal from income.
F.S. 738.505
738.505 Reimbursement of principal from income.—
(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 to provide a reserve for future principal disbursements.
(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:
(a) An amount chargeable to income but paid from principal because income is not sufficient;
(b) The cost of an improvement to principal, whether a change to an existing asset or the construction of a new asset, including a special assessment;
(c) A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions;
(d) A periodic payment on an obligation secured by a principal asset, to the extent the amount transferred from income to principal for depreciation is less than the periodic payment; and
(e) A disbursement described in s. 738.502(1).
(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 1may make transfers under subsection (1).
History.—s. 1, ch. 2002-42; s. 30, ch. 2012-49; s. 40, ch. 2024-216.
1Note.—The word “to” following the word “may” was deleted by the editors.
Note.—Former s. 738.704.