22-3-403 - Receipts from entities -- Business and other activities conducted by trustee. - Utah Statutes

22-3-403. Receipts from entities -- Business and other activities conducted bytrustee.
(1) If a trustee who conducts a business or other activity determines that it is in the bestinterest of all the beneficiaries to account separately for the business or activity instead ofaccounting for it as part of the trust's general accounting records, the trustee may maintainseparate accounting records for its transactions, whether or not its assets are segregated fromother trust assets.
(2) A trustee who accounts separately for a business or other activity may determine theextent to which its net cash receipts must be retained for working capital, the acquisition orreplacement of fixed assets, and other reasonably foreseeable needs of the business or activity,and the extent to which the remaining net cash receipts are accounted for as principal or incomein the trust's general accounting records. If a trustee sells assets of the business or other activity,other than in the ordinary course of the business or activity, the trustee shall account for the netamount received as principal in the trust's general accounting records to the extent the trusteedetermines that the amount received is no longer required in the conduct of the business.
(3) Activities for which a trustee may maintain separate accounting records include:
(a) retail, manufacturing, service, and other traditional business activities;
(b) farming;
(c) raising and selling livestock and other animals;
(d) management of rental properties;
(e) extraction of minerals and other natural resources;
(f) timber operations; and
(g) activities to which Section 22-3-414 applies.

Enacted by Chapter 285, 2004 General Session