2005 Idaho Code - 68-10-504 — TRANSFERS FROM INCOME TO REIMBURSE PRINCIPAL

                                  TITLE  68
                            TRUSTS AND FIDUCIARIES
                                  CHAPTER 10
                       UNIFORM PRINCIPAL AND INCOME ACT
                                   PART 5.
          ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST
    68-10-504.  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
(1) or more accounting periods to reimburse principal or to provide a reserve
for future principal disbursements.
    (b)  Principal disbursements to which subsection (a) of this section
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 section 68-10-502(a)(7), Idaho Code.
    (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 subsection (a) of this section.