reglab/housing_qa huggingface dataset:
IA Code § 637.502 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.502 - Disbursements from principal.

637.502 Disbursements from principal.   1. A trustee shall make disbursements from principal according to the following:   a. The remaining one-half of the disbursements described in section 637.501, subsections 1 and 2.   b. All of the trustee’s compensation calculated on principal as an acceptance, distribution, or termination fee, 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 to protect the trust or its property.   e. Insurance premiums paid on a policy not described in section 637.501, subsection 4, of which the trust 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 those 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.   2. If a trust owns a policy of insurance on the life of an individual and the trust is not the beneficiary of the policy, premiums paid on the policy are a distribution from principal to the policy beneficiary.   3. 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 obligation’s principal balance.  99 Acts, ch 124, §25  Referred to in §637.201, 637.410, 637.504
IA Code § 637.503 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.503 - Transfers from income to principal for depreciation.

637.503 Transfers from income to principal for depreciation.   1. For purposes of this section, “depreciation” means a reduction in value of a fixed asset having a useful life of more than one year due to wear, tear, decay, corrosion, or gradual obsolescence.   2. A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but a transfer shall not be made for depreciation under any of the following circumstances:   a. When the depreciation involves the portion of real property used or available for use by a beneficiary as a residence, or tangible personal property held or made available for the personal use or enjoyment of a beneficiary.   b. When the depreciation occurs during the administration of a decedent’s estate.   c. If the trustee is accounting under section 637.403 for the business or activity in which the asset is used.   3. An amount transferred to principal need not be held as a separate fund.  99 Acts, ch 124, §26  Referred to in §637.422
IA Code § 637.504 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.504 - Transfers from income to reimburse principal.

637.504 Transfers from income to reimburse principal.   1. 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.   2. Principal disbursements to which subsection 1 applies include all of the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party:   a. An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs.   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.   c. Disbursements made to prepare property for rental, including leasehold improvements and broker’s commissions.   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.   e. Disbursements described in section 637.502, subsection 1, paragraph “g”.   3. 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.  99 Acts, ch 124, §27
IA Code § 637.505 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.505 - Income taxes.

637.505 Income taxes.   1. A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.   2. A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.   3. A tax required to be paid by a trustee on the trust’s share of an entity’s taxable income must be paid according to all of the following principles:   a. From income, to the extent that receipts from the entity are allocated only to income.   b. From principal, to the extent that receipts from the entity are allocated only to principal.   c. Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal.   d. From principal to the extent that the tax exceeds the total receipts from the entity.   4. After applying subsections 1 through 3, the trustee shall adjust income or principal receipts to the extent that the taxes of the trust are reduced because the trust receives a deduction for payments made to a beneficiary.  99 Acts, ch 124, §28; 2009 Acts, ch 52, §13, 14
IA Code § 637.506 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.506 - Adjustments between principal and income because of taxes.

637.506 Adjustments between principal and income because of taxes.   1. A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from any of the following:   a. Elections and decisions, other than those described in subsection 2, that the fiduciary makes from time to time regarding tax matters.   b. An income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust.   c. The ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust, or a beneficiary.   2. If the amount of an estate tax marital deduction or charitable contributions deduction is reduced because a fiduciary deducts an amount that is paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust, or beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contributions deduction but for the payment. The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.  99 Acts, ch 124, §29
IA Code § 637.601 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.601 - Definitions.

637.601 Definitions.   For purposes of this subchapter:   1. “Disinterested person” means a person who is not a related or subordinate party as defined in section 672(c) of the Internal Revenue Code with respect to the person acting as trustee of the trust and excludes the trustor of the trust and any interested trustee.   2. “Income trust” means a trust, created by either an inter vivos or a testamentary instrument, which directs or permits the trustee to distribute the net income of the trust to one or more persons, either in fixed proportions or in amounts or proportions determined by the trustee. However, a trust that does not meet this definition is nonetheless an income trust if the trust is subject to taxation under section 2001 or 2501 of the Internal Revenue Code, until the expiration of the period for filing the return, including extensions.   3. “Interested distributee” means a person, to whom distributions of income or principal can currently be made, who has the power to remove the existing trustee and designate as successor a person who may be a related or subordinate party, as defined in section 672(c) of the Internal Revenue Code, with respect to such distributee.   4. “Interested trustee” means any of the following:   a. An individual trustee to whom the net income or principal of the trust can currently be distributed or would be distributed if the trust were to terminate and be distributed.   b. Any trustee who may be removed and replaced by an interested distributee.   c. An individual trustee whose legal obligation to support a beneficiary may be satisfied by distributions of income and principal of the trust.   5. “Total return unitrust” means an income trust which has been converted under and meets the provisions of this subchapter.   6. “Trustee” means a person acting as trustee of the trust, except where expressly noted otherwise, whether acting in the trustee’s discretion or on the direction of one or more persons acting in a fiduciary capacity.   7. “Trustor” means an individual who creates an inter vivos or a testamentary trust.   8. “Unitrust amount” means an amount computed as a percentage of the fair market value of the trust.  99 Acts, ch 124, §30; 2002 Acts, ch 1086, §5, 21; 2003 Acts, ch 108, §110  Referred to in §637.613
IA Code § 637.602 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.602 - Trustee’s authority to convert.

637.602 Trustee’s authority to convert.   A trustee, other than an interested trustee, or, where two or more persons are acting as trustee, a majority of the trustees who are not interested trustees, may, in the trustee’s sole discretion and without the approval of the court, do any of the following subject to the requirements of section 637.603:   1. Convert an income trust to a total return unitrust.   2. Reconvert a total return unitrust to an income trust.   3. Change the method used to determine the fair market value of the trust.  2002 Acts, ch 1086, §6, 21  Referred to in §637.603, 637.606, 637.613
IA Code § 637.603 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.603 - Trustee requirements to convert or change computation method.

637.603 Trustee requirements to convert or change computation method.   A trustee may proceed to take action under section 637.602 if all of the following apply:   1. The trustee adopts a written policy for the trust as follows:   a. In the case of a trust being administered as an income trust, requiring that future distributions from the trust will be unitrust amounts rather than net income.   b. In the case of a trust being administered as a total return unitrust, requiring that future distributions from the trust will be net income rather than unitrust amounts.   c. Requiring that the method used to determine the fair market value of the trust will be changed as stated in the policy.   2. The trustee sends written notice of the trustee’s intention to take any action described in section 637.602, along with copies of such written policy and this subchapter, to all of the following persons:   a. The trustor of the trust, if living.   b. All living persons who are currently receiving or eligible to receive distributions of income of the trust.   c. All living persons who would receive principal of the trust if the trust were to terminate at the time of the giving of such notice, without regard to the exercise of any power of appointment or, if the trust does not provide for its termination, all living persons who would receive or be eligible to receive distributions of income or principal of the trust if the persons identified in paragraph “b” were deceased.   d. All persons named in the governing instrument as adviser to or protector of the trust.   3. At least one person receiving notice under subsection 2, paragraphs “b” and “c”, is legally competent.   4. No person receiving such notice under subsection 2, objects, by written instrument delivered to the trustee, to the proposed action of the trustee within sixty days of receipt of such notice.  2002 Acts, ch 1086, §7, 21; 2003 Acts, ch 44, §104  Referred to in §637.602, 637.613
IA Code § 637.604 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.604 - Interested trustee’s authority to convert.

637.604 Interested trustee’s authority to convert.   If there is no trustee of the trust other than an interested trustee, the interested trustee or, where two or more persons are acting as trustee and are interested trustees, a majority of such interested trustees may, in the trustee’s sole discretion and without the approval of the court, do any of the following subject to the requirements of section 637.605:   1. Convert an income trust to a total return unitrust.   2. Reconvert a total return unitrust to an income trust.   3. Change the method used to determine the fair market value of the trust.  2002 Acts, ch 1086, §8, 21  Referred to in §637.605, 637.606, 637.613
IA Code § 637.605 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.605 - Interested trustee requirements to convert or change computation method.

637.605 Interested trustee requirements to convert or change computation method.   An interested trustee may proceed to take action under section 637.604 if all of the following apply:   1. The trustee adopts a written policy for the trust as follows:   a. In the case of a trust being administered as an income trust, requiring that future distributions from the trust will be unitrust amounts rather than net income.   b. In the case of a trust being administered as a total return unitrust, requiring that future distributions from the trust will be net income rather than unitrust amounts.   c. Requiring that the method used to determine the fair market value of the trust will be changed as stated in the policy.   2. The trustee appoints a disinterested person who, in the person’s sole discretion, but acting in a fiduciary capacity, determines for the trustee the method to be used in determining the fair market value of the trust, and which assets, if any, are to be excluded in determining the unitrust amount.   3. The trustee sends written notice of the trustee’s intention to take any action described in section 637.604, along with copies of such written policy, this subchapter, and the determination of the disinterested person to all of the following persons:   a. The trustor of the trust, if living.   b. All living persons who are currently receiving or eligible to receive distributions of income of the trust.   c. All living persons who would receive principal of the trust if the trust were to terminate at the time of the giving of such notice, without regard to the exercise of any power of appointment or, if the trust does not provide for its termination, all living persons who would receive or be eligible to receive distributions of income or principal of the trust if the persons identified in paragraph “b” were deceased.   d. All persons named in the governing instrument as adviser to or protector of the trust.   4. At least one person receiving notice under subsection 3, paragraphs “b” and “c”, is legally competent.   5. No person receiving the notice described in subsection 3 objects, by written instrument delivered to the trustee, to the proposed action of the trustee within sixty days of receipt of such notice.  2002 Acts, ch 1086, §9, 21; 2003 Acts, ch 44, §105; 2003 Acts, ch 108, §111  Referred to in §637.604, 637.613
IA Code § 637.606 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.606 - Petition to court to convert trust.

637.606 Petition to court to convert trust.   1. If any trustee desires to do any of the following but does not have the ability to or elects not to do so under the provisions of section 637.602 or 637.604, the trustee may petition the court for such order as the trustee deems appropriate:   a. Convert an income trust to a total return unitrust.   b. Reconvert a total return unitrust to an income trust.   c. Change the percentage used to calculate the unitrust amount or the method used to determine the fair market value of the trust.   2. If, however, there is only one trustee of such trust and such trustee is an interested trustee or in the event there are two or more trustees of such trust and a majority of them are interested trustees, the court, in its own discretion or upon the petition of such trustee or trustees or any person interested in the trust, may appoint a disinterested person who, acting in a fiduciary capacity, shall present such information to the court as necessary to enable the court to make its determinations.  2002 Acts, ch 1086, §10, 21; 2013 Acts, ch 30, §261  Referred to in §637.613
IA Code § 637.607 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.607 - Valuation of trust.

637.607 Valuation of trust.   The fair market value of the trust shall be determined at least annually, using such valuation date or dates or averages of valuation dates as are deemed appropriate. Assets for which a fair market value cannot be readily ascertained shall be valued using such valuation methods as are deemed reasonable and appropriate. Such assets may be excluded from valuation, provided all income received with respect to such assets is distributed to the extent distributable in accordance with the terms of the governing instrument.  2002 Acts, ch 1086, §11, 21  Referred to in §637.613
IA Code § 637.608 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.608 - Payout percentage.

637.608 Payout percentage.   The annual unitrust payout percentage shall be four percent unless the governing instrument specifically provides a different percentage or the court approves a percentage of not less than three percent or more than five percent after notice of intent to seek a payout percentage other than four percent has been given to all of the following persons:   1. The trustor of the trust, if living.   2. All living persons who are currently receiving or eligible to receive distributions of income of the trust.   3. All living persons who would receive principal of the trust if the trust were to terminate at the time of the giving of such notice without regard to the exercise of any power of appointment or, if the trust does not provide for its termination, all living persons who would receive or be eligible to receive distributions of income or principal of the trust if the persons identified in subsection 2 were deceased.   4. All persons named in the governing instrument as adviser to or protector of the trust.  2002 Acts, ch 1086, §12, 21  Referred to in §637.613
IA Code § 637.609 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.609 - Unitrust amount.

637.609 Unitrust amount. Repealed by  2008 Acts, ch 1119, §38  .
IA Code § 637.610 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.610 - Procedure upon conversion of income trust to total return unitrust.

637.610 Procedure upon conversion of income trust to total return unitrust.   Following the conversion of an income trust to a total return unitrust, the trustee:   1. Shall treat the unitrust amount as if it were net income of the trust for purposes of determining the amount available, from time to time, for distribution from the trust.   2. Shall allocate an amount to trust income, not in excess of the annual unitrust payout amount, in the following order:   a. The amount derived from net income, as determined if the trust were other than a total return unitrust.   b. The amount derived from other ordinary income as determined for federal income tax purposes.   c. The amount derived from net realized short-term capital gains as determined for federal income tax purposes.   d. The amount derived from net realized long-term capital gains as determined for federal income tax purposes.   e. The amount derived from trust principal.  2002 Acts, ch 1086, §14, 21  Referred to in §637.613
IA Code § 637.611 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.611 - Total return unitrust administration.

637.611 Total return unitrust administration.   In administering a total return unitrust, the trustee may, in the trustee’s sole discretion but subject to the provisions of the governing instrument, determine all of the following:   1. The effective date of the conversion.   2. The timing of distributions, including provisions for prorating a distribution for a short year in which a beneficiary’s right to payments commences or ceases.   3. Whether distributions are to be made in cash or in kind or partly in cash and partly in kind.   4. If the trust is reconverted to an income trust, the effective date of such reconversion.   5. Such other administrative issues as may be necessary or appropriate to carry out the purposes of this subchapter.  2002 Acts, ch 1086, §15, 21  Referred to in §637.613
IA Code § 637.612 (2021)
2021 Iowa Code|Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES|Chapter 637 - UNIFORM PRINCIPAL AND INCOME ACT|Section 637.612 - Principal distributions subject to governing instrument.

637.612 Principal distributions subject to governing instrument.   Conversion to a total return unitrust under the provisions of this subchapter shall not affect any other provision of the governing instrument, if any, regarding distributions of principal.  2002 Acts, ch 1086, §16, 21  Referred to in §637.613