Revised Code of Washington
Chapter 11.104B - Uniform Fiduciary Income and Principal Act.
11.104B.440 - Disbursements—Reimbursement of principal from income.

RCW 11.104B.440
Disbursements—Reimbursement of principal from income.

(1) If a fiduciary makes or expects to make a principal disbursement described in subsection (2) of this section, the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or provide a reserve for future principal disbursements.
(2) To the extent a fiduciary has not been and does not expect to be reimbursed by a third party, principal disbursements to which subsection (1) of this section applies include:
(a) An amount chargeable to income but paid from principal because income is not sufficient;
(b) The cost of an improvement to principal, whether a change to an existing asset or the construction of a new asset, including a special assessment;
(c) A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions;
(d) A periodic payment on an obligation secured by a principal asset, to the extent the amount transferred from income to principal for depreciation is less than the periodic payment; and
(e) A disbursement described in RCW 11.104B.410(1).
(3) If an asset whose ownership gives rise to a principal disbursement becomes subject to a successive interest after an income interest ends, the fiduciary may continue to make transfers under subsection (1) of this section.

[ 2021 c 140 § 2505.]

Structure Revised Code of Washington

Revised Code of Washington

Title 11 - Probate and Trust Law

Chapter 11.104B - Uniform Fiduciary Income and Principal Act.

11.104B.001 - Short title.

11.104B.005 - Definitions.

11.104B.010 - Scope.

11.104B.020 - Governing law.

11.104B.050 - Fiduciary duties—General principles.

11.104B.060 - Fiduciary duties—Judicial review of exercise of discretionary power—Request for instruction.

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.560 - Death or termination of interest—Apportionment of receipts and disbursements when decedent dies or income interest begins.

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.902 - Application.

11.104B.903 - Application of chapter 11.96A RCW.

11.104B.904 - Construction—Chapter applicable to state registered domestic partnerships—2009 c 521.

11.104B.905 - Effective date—2021 c 140 §§ 2101-2806.