58-9-403. Business and other activities conducted by trustee. - Kansas Statutes

58-9-403

Chapter 58.--PERSONAL AND REAL PROPERTY Part 4.--ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)

      58-9-403.   Business and other activities conducted bytrustee.(a) If a trustee who conducts a business or other activitydetermines that itis in the best interest of all the beneficiaries to account separately for thebusiness oractivity instead of accounting for it as part of the trust's general accountingrecords,the trustee may maintain separate accounting records for its transactions,whether ornot its assets are segregated from other trust assets.

      (b)   A trustee who accounts separately for a business or other activity maydetermine the extent to which its net cash receipts must be retained forworkingcapital, the acquisition or replacement of fixed assets, and other reasonablyforeseeable needs of the business or activity, and the extent to which theremainingnet cash receipts are accounted for as principal or income in the trust'sgeneralaccounting records. If a trustee sells assets of the business or otheractivity, otherthan in the ordinary course of the business or activity, the trustee shallaccount forthe net amount received as principal in the trust's general accounting recordsto theextent the trustee determines that the amount received is no longer required intheconduct of the business.

      (c)   Activities for which a trustee may maintain separate accounting recordsinclude:

      (1)   Retail, manufacturing, service, and other traditional businessactivities;

      (2)   farming;

      (3)   raising and selling livestock and other animals;

      (4)   management of rental properties;

      (5)   extraction of minerals and other natural resources;

      (6)   timber operations; and

      (7)   activities to which K.S.A. 58-9-414, and amendments thereto,applies.

      History:   L. 2000, ch. 61, § 12; July 1.