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        ARS Title 14 (Sep 2026)
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6024 E 32nd St
Yuma, AZ 85365
(928) 783-4575
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← Back to Arizona Legal Reference
14-7428

Transfers from income to reimburse principal

Revised Uniform Principal and Income Act

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 brokers' 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.

5. Disbursements described in section 14-7426, subsection A, paragraph 7.

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.

Last verified against the Arizona Legislature:
September 15, 2026
Official Arizona Legislature Source
Deason Garner & Sparks
(928) 783-45756024 E 32nd St
Yuma, AZ 85365
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