Me. Stat. tit. 18-C § 7-464

Current through 131st (2023-2024) Legislature Chapter 684
Section 7-464 - Transfers from income to reimburse principal
1.Transfer to reimburse or provide reserve. If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.

[2017, c. 402, Pt. A, §2(NEW); 2019, c. 417, Pt. B, §14(AFF).]

2.Applicable principal disbursement. Principal disbursements to which subsection 1 applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a 3rd party:
A. An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs; [2017, c. 402, Pt. A, §2(NEW); 2019, c. 417, Pt. B, §14(AFF).]
B. A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments; [2017, c. 402, Pt. A, §2(NEW); 2019, c. 417, Pt. B, §14(AFF).]
C. Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements and broker's commissions; [2017, c. 402, Pt. A, §2(NEW); 2019, c. 417, Pt. B, §14(AFF).]
D. Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and [2017, c. 402, Pt. A, §2(NEW); 2019, c. 417, Pt. B, §14(AFF).]
E. Disbursements described in section 7-462, subsection 1, paragraph G. [2017, c. 402, Pt. A, §2(NEW); 2019, c. 417, Pt. B, §14(AFF).]

[2017, c. 402, Pt. A, §2(NEW); 2019, c. 417, Pt. B, §14(AFF).]

3.Successive income interest. If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection 1.

[2017, c. 402, Pt. A, §2(NEW); 2019, c. 417, Pt. B, §14(AFF).]

18-C M.R.S. § 7-464

Amended by 2019, c. 417,§ B-14, eff. 6/20/2019.
Added by 2018, c. 402,§ A-2, eff. 7/1/2019.