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. § 3362)
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§ 3362. Timber
(a) To the extent that a trustee accounts for receipts from the sale of timber and related
products pursuant to this section, the trustee shall allocate the net receipts:
(1) to income to the extent that 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;
(2) to principal to the extent that 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;
(3) 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, by determining the amount
of timber removed from the land under the lease or contract and applying the rules
in subdivision (1) and (2) of this subsection; or
(4) to principal to the extent that advance payments, bonuses, and other payments are
not allocated pursuant to subdivision (1), (2), or (3) of this subsection.
(b) In determining net receipts to be allocated pursuant to subsection (a) of this section,
a trustee shall deduct and transfer to principal a reasonable amount for depletion.
(c) This chapter applies whether or not a decedent or transferor was harvesting timber
from the property before it become subject to the trust.
(d) If a trust owns an interest in timberland on July 1, 2012, the trustee may allocate
net receipts from the sale of timber and related products as provided in this chapter
or in the manner used by the trustee before July 1, 2012. If the trust acquires an
interest in timberland after July 1, 2012, the trustee shall allocate net receipts
from the sale of timber and related products as provided in this chapter. (Added 2011, No. 114 (Adj. Sess.), § 1.)