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. § 3364)
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§ 3364. Derivatives and options
(a) As used in this section, “derivative” means a contract or financial instrument or
a combination of contracts and financial instruments which gives a trust the right
or obligation to participate in some or all changes in the price of a tangible or
intangible asset or group of assets, or changes in a rate, an index of prices or rates,
or other market indicator for an asset or a group of assets.
(b) To the extent that a trustee does not account under section 3353 of this title for transactions in derivatives, the trustee shall allocate to principal receipts
from and disbursements made in connection with those transactions.
(c) If a trustee grants an option to buy property from the trust, whether or not the trust
owns the property when the option is granted, grants an option that permits another
person to sell property to the trust, or acquires an option to buy property for the
trust or an option to sell an asset owned by the trust, and the trustee or other owner
of the asset is required to deliver the asset if the option is exercised, an amount
received for granting the option must be allocated to principal. An amount paid to
acquire the option must be paid from principal. A gain or loss realized upon the exercise
of an option, including an option granted to a settlor of the trust for services rendered,
must be allocated to principal. (Added 2011, No. 114 (Adj. Sess.), § 1.)