N.Y. Estates, Powers & Trusts Law Section 11-A-5.4
Transfers from income to reimburse principal

§ 11-A-5.4 Transfers from income to reimburse principal (a) 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.

(b)

Principal disbursements to which paragraph (a) applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party:

(1)

an amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;

(2)

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;

(3)

disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker’s commissions;

(4)

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

(5)

disbursements described in subparagraph 11-A-5.2 (a)(7).

(c)

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 paragraph (a).

Source: Section 11-A-5.4 — Transfers from income to reimburse principal, https://www.­nysenate.­gov/legislation/laws/EPT/11-A-5.­4 (updated Sep. 22, 2014; accessed Dec. 2, 2023).

Green check means up to date. Up to date

Accessed:
Dec. 2, 2023

Last modified:
Sep. 22, 2014

§ 11-A-5.4’s source at nysenate​.gov

Link Style