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
005
:
ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST
(Cite as: 14 V.S.A. § 3374)
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§ 3374. 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 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 subdivision 3372(a)(7) of this title.
(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. (Added 2011, No. 114 (Adj. Sess.), § 1.)