22-3-502 - Disbursements from principal. - Utah Statutes

22-3-502. Disbursements from principal.
(1) A trustee shall make the following disbursements from principal:
(a) the remaining 1/2 of the disbursements described in Subsections 22-3-501(1) and (2);
(b) all of the trustee's compensation calculated on principal as a fee for acceptance,distribution, or termination, and disbursements made to prepare property for sale;
(c) payments on the principal of a trust debt;
(d) expenses of a proceeding that concerns primarily principal, including a proceeding toconstrue the trust or to protect the trust or its property;
(e) premiums paid on a policy of insurance not described in Subsection 22-3-501(4) ofwhich the trust is the owner and beneficiary;
(f) estate, inheritance, and other transfer taxes, including penalties, apportioned to thetrust; and
(g) disbursements related to environmental matters, including reclamation, assessingenvironmental conditions, remedying and removing environmental contamination, monitoringremedial activities and the release of substances, preventing future releases of substances,collecting amounts from persons liable or potentially liable for the costs of those activities,penalties imposed under environmental laws or regulations and other payments made to complywith those laws or regulations, statutory or common law claims by third parties, and defendingclaims based on environmental matters.
(2) If a principal asset is encumbered with an obligation that requires income from thatasset to be paid directly to the creditor, the trustee shall transfer from principal to income anamount equal to the income paid to the creditor in reduction of the principal balance of theobligation.

Enacted by Chapter 285, 2004 General Session