The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
002
:
DECEDENT'S ESTATE OR TERMINATING INCOME INTEREST
(Cite as: 14 V.S.A. § 3332)
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§ 3332. Distribution to residuary and remainder beneficiaries
(a) Each beneficiary described in subdivision 3331(4) of this title is entitled to receive a portion of the net income equal to the beneficiary’s fractional
interest in undistributed principal assets, using values as of the distribution date.
If a fiduciary makes more than one distribution of assets to beneficiaries to whom
this section applies, each beneficiary, including one who does not receive part of
the distribution, is entitled, as of each distribution date, to the beneficiary’s
fractional interest in the net income the fiduciary has received after the date of
death or terminating event or earlier distribution date, but has not distributed as
of the current distribution date.
(b) In determining a beneficiary’s share of net income, the following rules apply:
(1) The beneficiary is entitled to receive a portion of the net income equal to the beneficiary’s
fractional interest in the undistributed principal assets immediately before the distribution
date, including assets that later may be sold to meet principal obligations.
(2) The beneficiary’s fractional interest in the undistributed principal assets must be
calculated without regard to property specifically given to a beneficiary and property
required to pay pecuniary amounts.
(3) The beneficiary’s fractional interest in the undistributed principal assets must be
calculated on the basis of the aggregate value of those assets as of the distribution
date without reducing the value by any unpaid principal obligation.
(4) The distribution date for purposes of this section may be the date as of which the
fiduciary calculates the value of the assets if that date is reasonably near the date
on which assets are actually distributed.
(c) If a fiduciary does not distribute all of the collected but undistributed net income
to each person as of a distribution date, the fiduciary shall maintain appropriate
records showing the interest of each beneficiary in that net income.
(d) A fiduciary may apply the rules in this section, to the extent that the fiduciary
considers it appropriate, to net gain or loss realized after the date of death or
terminating event or earlier distribution date from the disposition of a principal
asset if this section applies to the income from the asset. (Added 2011, No. 114 (Adj. Sess.), § 1.)