The Florida Senate

738.03  Income; principal; charges.--

(1)  "Income" is the return in money or property derived from the use of principal, including return received as:

(a)  Rent of real or personal property, including sums received for cancellation or renewal of a lease.

(b)  Interest on money lent, including sums received as consideration for the privilege of prepayment of principal, except as provided in s. 738.07(1) on bond premium and bond discount.

(c)  Income earned during administration of a decedent's estate as provided in s. 738.05.

(d)  Corporate distributions as provided in s. 738.06.

(e)  Accrued increment on bonds or other obligations issued at discount as provided in s. 738.07(2).

(f)  Receipts from business and farming operations, as provided in s. 738.08.

(g)  Receipts from disposition of natural resources, as provided in ss. 738.09 and 738.10.

(h)  Receipts from other principal subject to depletion, as provided in s. 738.11.

(i)  Receipts from disposition of underproductive property as provided in s. 738.12.

(2)  "Principal" is the property that has been set aside by the owner or the person legally empowered so that it is held in trust eventually to be delivered to a remainderman, while the return or use of the principal is in the meantime taken or received by, or held for accumulation for, an income beneficiary. "Principal" includes:

(a)  Consideration received by the trustee on the sale or other transfer of principal, on repayment of a loan, or as a refund, replacement, or change in the form of principal.

(b)  Proceeds of property taken in eminent domain proceedings.

(c)  Proceeds of insurance upon property forming part of the principal, except proceeds of insurance upon a separate interest of an income beneficiary.

(d)  Stock dividends, receipts on liquidation of a corporation, and other corporate distributions as provided in s. 738.06.

(e)  Receipts from the disposition of corporate securities as provided in s. 738.07.

(f)  Royalties and other receipts from disposition of natural resources as provided in ss. 738.09 and 738.10.

(g)  Receipts from other principal subject to depletion, as provided in s. 738.11.

(h)  Any profit resulting from any change in the form of principal, except as provided in s. 738.12 on underproductive property.

(i)  Receipts from disposition of underproductive property, as provided in s. 738.12.

(j)  Any allowances for depreciation established under ss. 738.08 and 738.13(1)(b).

(3)  After determining income and principal in accordance with the trust instrument or this chapter, the trustee shall charge expenses and other charges to income or principal as provided in s. 738.13.

History.--s. 1, ch. 74-106; s. 14, ch. 75-221; s. 3, ch. 77-254.

Note.--Created from former s. 690.04.