reglab/housing_qa huggingface dataset:
FL Stat § 738.403 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.403 - Business and Other Activities Conducted by Fiduciary.

738.403 Business and other activities conducted by fiduciary.—(1) If a fiduciary who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for the business or activity as part of the trust’s or estate’s general accounting records, the fiduciary may maintain separate accounting records for the transactions of the business or other activity, whether or not the assets of such business or activity are segregated from other trust or estate assets.(2) A fiduciary who accounts separately for a business or other activity may determine the extent to which the net cash receipts of the business or activity must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust’s or estate’s general accounting records. If a fiduciary sells assets of the business or other activity, other than in the ordinary course of the business or activity, the fiduciary must account for the net amount received as principal in the trust’s or estate’s general accounting records to the extent the fiduciary determines that the amount received is no longer required in the conduct of the business.(3) Activities for which a fiduciary may maintain separate accounting records include:(a) Retail, manufacturing, service, and other traditional business activities.(b) Farming.(c) Raising and selling livestock and other animals.(d) Management of rental properties.(e) Extraction of minerals and other natural resources.(f) Timber operations.(g) Activities to which s. 738.607 applies.History.—s. 1, ch. 2002-42; s. 14, ch. 2012-49.
FL Stat § 738.501 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.501 - Principal Receipts.

738.501 Principal receipts.—A fiduciary shall allocate to principal:(1) To the extent not allocated to income under this chapter, assets received from a donor during the donor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payor under a contract naming the trust, estate, or fiduciary as beneficiary.(2) Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this section.(3) Amounts recovered from third parties to reimburse the trust or estate because of disbursements described in s. 738.702(1)(g) or for other reasons to the extent not based on the loss of income.(4) Proceeds of property taken by eminent domain; however, a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income.(5) Net income received in an accounting period during which there is no beneficiary to whom a fiduciary may or shall distribute income.(6) Other receipts as provided in ss. 738.601-738.608.History.—s. 1, ch. 2002-42; s. 15, ch. 2012-49.
FL Stat § 738.502 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.502 - Rental Property.

738.502 Rental property.—If a fiduciary accounts for receipts from rental property pursuant to this section, the fiduciary shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, must be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the fiduciary’s contractual obligations have been satisfied with respect to that amount.History.—s. 1, ch. 2002-42; s. 16, ch. 2012-49.
FL Stat § 738.503 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.503 - Obligation to Pay Money.

738.503 Obligation to pay money.—(1) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the fiduciary, including an amount received as consideration for prepaying principal, shall be allocated to income without any provision for amortization of premium.(2) Except as otherwise provided herein, a fiduciary shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the fiduciary.(3) The increment in value of a bond or other obligation for the payment of money bearing no stated interest but payable at a future time in excess of the price at which it was issued or purchased, if purchased after issuance, is distributable as income. If the increment in value accrues and becomes payable pursuant to a fixed schedule of appreciation, it may be distributed to the beneficiary who was the income beneficiary at the time of increment from the first principal cash available or, if none is available, when the increment is realized by sale, redemption, or other disposition. If unrealized increment is distributed as income but out of principal, the principal must be reimbursed for the increment when realized. If, in the reasonable judgment of the fiduciary, exercised in good faith, the ultimate payment of the bond principal is in doubt, the fiduciary may withhold the payment of incremental interest to the income beneficiary.(4) This section does not apply to an obligation to which s. 738.602, s. 738.603, s. 738.604, s. 738.605, s. 738.607, or s. 738.608 applies.History.—s. 1, ch. 2002-42; s. 17, ch. 2012-49.
FL Stat § 738.504 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.504 - Insurance Policies and Similar Contracts.

738.504 Insurance policies and similar contracts.—(1) Except as otherwise provided in subsection (2), a fiduciary shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust, estate, or fiduciary is named as beneficiary, including a contract that insures the trust, estate, or fiduciary against loss for damage to, destruction of, or loss of title to a trust or estate asset. The fiduciary shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income and to principal if the premiums are paid from principal.(2) A fiduciary shall allocate to income the proceeds of a contract that insures the fiduciary against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to s. 738.403, loss of profits from a business.(3) This section does not apply to a contract to which s. 738.602 applies.History.—s. 1, ch. 2002-42; s. 18, ch. 2012-49.
FL Stat § 738.601 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.601 - Insubstantial Allocations Not Required.

738.601 Insubstantial allocations not required.—If a fiduciary determines that an allocation between principal and income required by s. 738.602, s. 738.603, s. 738.604, s. 738.605, or s. 738.608 is insubstantial, the fiduciary may allocate the entire amount to principal unless one of the circumstances described in s. 738.104(3) applies to the allocation. This power may be exercised by a cofiduciary under the circumstances described in s. 738.104(4) and may be released for the reasons and in the manner described in s. 738.104(5). An allocation is presumed to be insubstantial if:(1) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10 percent; or(2) The value of the asset producing the receipt for which the allocation would be made is less than 10 percent of the total value of the trust or estate assets at the beginning of the accounting period.History.—s. 1, ch. 2002-42; s. 19, ch. 2012-49.
FL Stat § 738.603 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.603 - Liquidating Asset.

738.603 Liquidating asset.—(1) For purposes of this section, the term “liquidating asset” means an asset the value of which will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments for more than 1 year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to s. 738.602, resources subject to s. 738.604, timber subject to s. 738.605, an activity subject to s. 738.607, an asset subject to s. 738.608, or any asset for which the fiduciary establishes a reserve for depreciation under s. 738.703.(2) A fiduciary shall allocate to income 5 percent of the receipts from the carrying value of a liquidating asset and the balance to principal. Amounts allocated to principal shall reduce the carrying value of the liquidating asset, but not below zero. Amounts received in excess of the remaining carrying value must be allocated to principal.History.—s. 1, ch. 2002-42; s. 21, ch. 2012-49.
FL Stat § 738.604 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.604 - Minerals, Water, and Other Natural Resources.

738.604 Minerals, water, and other natural resources.—(1) If a fiduciary accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the fiduciary shall allocate such receipts as follows:(a) If received as nominal delay rental or nominal annual rent on a lease, a receipt shall be allocated to income.(b) If received from a production payment, a receipt shall be allocated to income if and to the extent the agreement creating the production payment provides a factor for interest or its equivalent. The balance shall be allocated to principal.(c) If an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, 90 percent shall be allocated to principal and the balance to income.(d) If an amount is received from a working interest or any other interest not provided for in paragraph (a), paragraph (b), or paragraph (c), 90 percent of the net amount received shall be allocated to principal and the balance to income.(2) An amount received on account of an interest in water that is renewable shall be allocated to income. If the water is not renewable, 90 percent of the amount shall be allocated to principal and the balance to income.(3) This chapter applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust or estate.(4) If a trust or estate owns an interest in minerals, water, or other natural resources on January 1, 2003, the fiduciary may allocate receipts from the interest as provided in this chapter or in the manner used by the fiduciary before January 1, 2003. If the trust or estate acquires an interest in minerals, water, or other natural resources after January 1, 2003, the fiduciary shall allocate receipts from the interest as provided in this chapter.History.—s. 1, ch. 2002-42; s. 22, ch. 2012-49.
FL Stat § 738.605 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.605 - Timber.

738.605 Timber.—(1) If a fiduciary accounts for receipts from the sale of timber and related products pursuant to this section, the fiduciary shall allocate such net receipts as follows:(a) To income to the extent the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;(b) To principal to the extent the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;(c) To or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust or estate by determining the amount of timber removed from the land under the lease or contract and applying the rules in paragraphs (a) and (b); or(d) To principal to the extent advance payments, bonuses, and other payments are not allocated pursuant to paragraph (a), paragraph (b), or paragraph (c).(2) In determining net receipts to be allocated pursuant to subsection (1), a fiduciary shall deduct and transfer to principal a reasonable amount for depletion.(3) This chapter applies whether or not a decedent or donor was harvesting timber from the property before the property became subject to the trust or estate.(4) If a trust or estate owns an interest in timberland on January 1, 2003, the fiduciary may allocate net receipts from the sale of timber and related products as provided in this chapter or in the manner used by the fiduciary before January 1, 2003. If the trust or estate acquires an interest in timberland after January 1, 2003, the fiduciary shall allocate net receipts from the sale of timber and related products as provided in this chapter.History.—s. 1, ch. 2002-42; s. 23, ch. 2012-49.
FL Stat § 738.606 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.606 - Property Not Productive of Income.

738.606 Property not productive of income.—(1) If a marital deduction under the Internal Revenue Code or comparable law of any state is allowed for all or part of a trust, or if assets are transferred to a trust that satisfies the requirements of s. 732.2025(2)(a) and (c), and such assets have been used in whole or in part to satisfy an election by a surviving spouse under s. 732.2125 and consist of property that, in the aggregate, does not provide the spouse with sufficient income from or use of the trust assets, and if amounts the trustee transfers from principal to income under s. 738.104 and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, even though, in the case of an elective share trust, a marital deduction is not made or is only partially made, the spouse may require the trustee of such marital trust or elective share trust to make property productive of income, convert property within a reasonable time, or exercise the power conferred by ss. 738.104 and 738.1041. The trustee may decide which action or combination of actions to take.(2) In cases not governed by subsection (1), proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period.History.—s. 1, ch. 2002-42; s. 24, ch. 2012-49; s. 12, ch. 2017-121.
FL Stat § 738.607 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.607 - Derivatives and Options.

738.607 Derivatives and options.—(1) For purposes of this section, “derivative” means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.(2) To the extent a fiduciary does not account under s. 738.403 for transactions in derivatives, the fiduciary shall allocate to principal receipts from and disbursements made in connection with those transactions.(3) If a fiduciary grants an option to buy property from the trust or estate whether or not the trust or estate owns the property when the option is granted, grants an option that permits another person to sell property to the trust or estate, or acquires an option to buy property for the trust or estate or an option to sell an asset owned by the trust or estate, and the fiduciary or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option shall be allocated to principal. An amount paid to acquire the option shall be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a grantor of the trust or estate for services rendered, shall be allocated to principal.History.—s. 1, ch. 2002-42; s. 25, ch. 2012-49.
FL Stat § 738.608 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.608 - Asset-Backed Securities.

738.608 Asset-backed securities.—(1) For purposes of this section, “asset-backed security” means an asset the value of which is based upon the right given the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return. The term does not include an asset to which s. 738.401 or s. 738.602 applies.(2) If a trust or estate receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the fiduciary shall allocate to income the portion of the payment which the payor identifies as being from interest or other current return and allocate the balance of the payment to principal.(3) If a trust or estate receives one or more payments in exchange for the trust’s or estate’s entire interest in an asset-backed security during a single accounting period, the fiduciary shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust’s or estate’s interest in the security over more than a single accounting period, the fiduciary shall allocate 10 percent of the payment to income and the balance to principal.History.—s. 1, ch. 2002-42; s. 26, ch. 2012-49.
FL Stat § 738.701 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.701 - Disbursements From Income.

738.701 Disbursements from income.—A fiduciary shall make the following disbursements from income to the extent they are not disbursements to which s. 738.201(2) applies:(1) One-half of the regular compensation of the fiduciary and of any person providing investment advisory or custodial services to the fiduciary.(2) One-half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests.(3) All of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest.(4) Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.History.—s. 1, ch. 2002-42; s. 27, ch. 2012-49.
FL Stat § 738.702 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.702 - Disbursements From Principal.

738.702 Disbursements from principal.—(1) A fiduciary shall make the following disbursements from principal:(a) The remaining one-half of the disbursements described in s. 738.701(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 to construe the trust or will, or to protect the trust, estate, or its property.(e) Premiums paid on a policy of insurance not described in s. 738.701(4) of which the trust or estate is the owner and beneficiary.(f) Estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust.(g) Disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of such activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters.(h) Payments representing extraordinary repairs or expenses incurred in making a capital improvement to principal, including special assessments; however, a fiduciary may establish an allowance for depreciation out of income to the extent permitted by s. 738.703.(2) If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.History.—s. 1, ch. 2002-42; s. 28, ch. 2012-49.
FL Stat § 738.703 (2021)
2021 Florida Statutes|Title XLII - Estates and Trusts|Chapter 738 - Principal and Income|738.703 - Transfers From Income to Principal for Depreciation.

738.703 Transfers from income to principal for depreciation.—(1) For purposes of this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than 1 year.(2) A fiduciary may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation but may not transfer any amount for depreciation:(a) Of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;(b) During the administration of a decedent’s estate; or(c) Under this section if the fiduciary is accounting under s. 738.403 for the business or activity in which the asset is used.(3) The amount of depreciation taken for tax purposes with respect to an asset shall be presumed to be a reasonable amount of depreciation. An amount taken for depreciation shall not be considered unreasonable solely because it is greater or less than the amount taken for tax purposes.(4) An amount transferred to principal need not be held as a separate fund.History.—s. 1, ch. 2002-42; s. 29, ch. 2012-49.