KANSAS STATUTES AND CODES

58-9-502. Disbursements from principal.

58-9-502

Chapter 58.--PERSONAL AND REAL PROPERTY Part 5.--ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)

58-9-502. Disbursements from principal.(a) A trustee shall make the following disbursements fromprincipal:

(1) The remaining one-half of the disbursements described in subsections (1)and (2) of K.S.A. 58-9-501 and amendments thereto;

(2) all of the trustee's compensation calculated on principal as afee foracceptance, distribution, or termination, and disbursements made to prepareproperty for sale;

(3) payments on the principal of a trust debt;

(4) expenses of a proceeding that concerns primarily principal, includinga proceeding to construe the trust or to protect the trust or its property;

(5) premiums paid on a policy of insurance not described in subsection (4) ofK.S.A. 58-9-501 and amendments thereto of which the trust is theowner andbeneficiary;

(6) estate, inheritance, and other transfer taxes, including penalties,apportioned to the trust; and

(7) disbursements related to environmental matters, includingreclamation, assessing environmental conditions, remedying and removingenvironmental contamination, monitoring remedial activities and the release ofsubstances, preventing future releases of substances, collecting amounts frompersons liable or potentially liable for the costs of those activities,penalties imposed under environmental laws or regulations and other paymentsmade tocomply with those laws or regulations, statutory or common law claims by thirdparties, and defending claims based on environmental matters.

(b) If a principal asset is encumbered with an obligation that requiresincome from that asset to be paid directly to the creditor, the trustee shalltransferfrom principal to income an amount equal to the income paid to the creditor inreduction of the principal balance of the obligation.

History: L. 2000, ch. 61, § 26; July 1.