RCW 11.104B.220
Receipts from entities—Businesses and other activities conducted by fiduciary.
(1) This section applies to a business or other activity conducted by a fiduciary if the fiduciary determines that it is in the interests of the beneficiaries to account separately for the business or other activity instead of:
(a) Accounting for the business or other activity as part of the fiduciary's general accounting records; or
(b) Conducting the business or other activity through an entity described in RCW 11.104B.200(1)(b)(i).
(2) A fiduciary may account separately under this section for the transactions of a business or other activity, whether or not assets of the business or other activity are segregated from other assets held by the fiduciary.
(3) A fiduciary that accounts separately under this section for a business or other activity:
(a) May determine:
(i) The extent to which the net cash receipts of the business or other activity must be retained for:
(A) Working capital;
(B) The acquisition or replacement of fixed assets; and
(C) Other reasonably foreseeable needs of the business or other activity; and
(ii) The extent to which the remaining net cash receipts are accounted for as principal or income in the fiduciary's general accounting records for the trust;
(b) May make a determination under (a) of this subsection (3) separately and differently from the fiduciary's decisions concerning distributions of income or principal; and
(c) Shall account for the net amount received from the sale of an asset of the business or other activity, other than a sale in the ordinary course of the business or other activity, as principal in the fiduciary's general accounting records for the trust, to the extent the fiduciary determines that the net amount received is no longer required in the conduct of the business or other activity.
(4) Activities for which a fiduciary may account separately under this section include:
(a) Retail, manufacturing, service, and other traditional business activities;
(b) Farming;
(c) Raising and selling livestock and other animals;
(d) Managing rental properties;
(e) Extracting minerals, water, and other natural resources;
(f) Growing and cutting timber;
(g) An activity to which RCW 11.104B.330, 11.104B.340, or 11.104B.350 applies; and
(h) Any other business conducted by the fiduciary.
[ 2021 c 140 § 2403.]
Structure Revised Code of Washington
Title 11 - Probate and Trust Law
Chapter 11.104B - Uniform Fiduciary Income and Principal Act.
11.104B.050 - Fiduciary duties—General principles.
11.104B.070 - Fiduciary duties—Power to adjust.
11.104B.100 - Unitrusts—Definitions.
11.104B.110 - Unitrusts—Application—Duties and remedies.
11.104B.120 - Unitrusts—Authority of fiduciary.
11.104B.130 - Unitrusts—Notice.
11.104B.140 - Unitrusts—Unitrust policies.
11.104B.150 - Unitrusts—Unitrust rates.
11.104B.160 - Unitrusts—Applicable value.
11.104B.170 - Unitrusts—Period.
11.104B.180 - Unitrust—Special tax benefits—Other rules.
11.104B.200 - Receipts from entities—Character.
11.104B.210 - Receipts from entities—Distributions from trusts and estates.
11.104B.220 - Receipts from entities—Businesses and other activities conducted by fiduciary.
11.104B.230 - Receipts not normally apportioned—Principal receipts.
11.104B.240 - Receipts not normally apportioned—Rental property.
11.104B.250 - Receipts not normally apportioned—Receipt on obligation to be paid in money.
11.104B.260 - Receipts not normally apportioned—Insurance policies and contracts.
11.104B.270 - Receipts normally apportioned—Insubstantial allocation not required.
11.104B.280 - Receipts normally apportioned—Deferred compensation, annuities, and similar payments.
11.104B.290 - Receipts normally apportioned—Liquidating assets.
11.104B.300 - Receipts normally apportioned—Minerals, water, and other natural resources.
11.104B.310 - Receipts normally apportioned—Timber.
11.104B.320 - Receipts normally apportioned—Marital deduction property not productive of income.
11.104B.330 - Receipts normally apportioned—Derivatives and options.
11.104B.340 - Receipts normally apportioned—Asset-backed securities.
11.104B.350 - Receipts normally apportioned—Other financial instruments and arrangements.
11.104B.400 - Disbursements—Disbursement from income.
11.104B.410 - Disbursements—Disbursement from principal.
11.104B.420 - Disbursements—Transfer from income to principal for depreciation.
11.104B.430 - Disbursements—Reimbursement of income from principal.
11.104B.440 - Disbursements—Reimbursement of principal from income.
11.104B.450 - Disbursements—Income taxes.
11.104B.460 - Disbursements—Adjustment between income and principal because of taxes.
11.104B.500 - Death or termination of interest—Determination and distribution of net income.
11.104B.510 - Death or termination of interest—Distribution to successor beneficiary.
11.104B.550 - Death or termination of interest—When right to income begins and ends.
11.104B.570 - Death or termination of interest—Apportionment when income interest ends.
11.104B.900 - Uniformity of application and construction.
11.104B.901 - Relation to electronic signatures in global and national commerce act.
11.104B.903 - Application of chapter 11.96A RCW.
11.104B.904 - Construction—Chapter applicable to state registered domestic partnerships—2009 c 521.