RCW 11.104B.440
217 words·~1 min read·
/wa/title-11/chapter-11-104b/11-104b-440·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)If a fiduciary makes or expects to make a principal disbursement described in subsection
(2)of this section, the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or provide a reserve for future principal disbursements.
(2)To the extent a fiduciary has not been and does not expect to be reimbursed by a third party, principal disbursements to which subsection
(1)of this section applies include:
(a)An amount chargeable to income but paid from principal because income is not sufficient;
(b)The cost of an improvement to principal, whether a change to an existing asset or the construction of a new asset, including a special assessment;
(c)A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions;
(d)A periodic payment on an obligation secured by a principal asset, to the extent the amount transferred from income to principal for depreciation is less than the periodic payment; and
(e)A disbursement described in RCW 11.104B.410 (1).
(3)If an asset whose ownership gives rise to a principal disbursement becomes subject to a successive interest after an income interest ends, the fiduciary may continue to make transfers under subsection
(1)of this section.
[ 2021 c 140 s 2505 .]