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
004
:
ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST
(Cite as: 14 V.S.A. § 3356)
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§ 3356. Obligation to pay money
(a) An amount received as interest, whether determined at a fixed, variable, or floating
rate, on a bond or an obligation to pay money to the fiduciary shall be allocated
to income.
(b) Except as provided in subsections (c) and (d) of this section, a fiduciary shall allocate
to principal any gain or loss realized upon the sale or maturity of any bond or obligation
to pay money to the fiduciary, regardless of how such bond or other obligation was
acquired.
(c) A fiduciary shall allocate to income the difference between inventory value or cost
and the amount realized upon sale or maturity, if greater, for bonds or other obligations
that do not bear interest, regardless of how or when such bond or other obligation
was acquired.
(d) For bonds or other obligations that are acquired by a fiduciary subsequent to the
time the principal was established and whose cost is greater than their par or maturity
value, the fiduciary shall amortize periodically out of income the premium paid and,
upon sale or maturity, shall allocate to principal any gain or loss realized thereon.
(e) This section does not apply to a bond or other obligation to which section 3359, 3360, 3361, 3362, 3364, or 3365 of this title applies. (Added 2011, No. 114 (Adj. Sess.), § 1.)