§ 738.410, Fla. Stat. · Chapter 738. UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT
Liquidating asset.
Text — 2026 Florida Statutes
(1) As used in this section, the term “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a limited time. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than 1 year under an arrangement that does not provide for the payment of interest on the unpaid balance.
(2) This section does not apply to a receipt that is subject to s. 738.401, s. 738.409, s. 738.411, s. 738.412, s. 738.414, s. 738.415, s. 738.416, or s. 738.503.
(3) A fiduciary shall allocate to income a receipt produced by a liquidating asset to the extent that the receipt does not exceed 5 percent of the carrying value of the asset at the beginning of the accounting period and allocate to principal the balance of the receipt.
(4) The amount allocated to principal shall reduce the carrying value of the liquidating asset, but not below zero. Amounts received in excess of the remaining carrying value must be allocated to principal.
Notes and commentary — not statutory text
History
s. 1, ch. 2002-42; s. 21, ch. 2012-49; s. 29, ch. 2024-216.
Note
Note.—Former s. 738.603.
Source of truth
- Edition
- 2026 Florida Statutes
- Official file
- https://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0738/0738.html
- Text hash
- sha256 e3bcd527e0f84e2bef8d9e385a1934f1f99a0f9df418180f2d21d15eb28aeea9
- Composed by
- compose_v2.py 2026-10-04: the Legislature's structured HTML read in document order; verify_v2.py's independent reading agrees character for character
- composed from the Legislature's structured HTML (one source of text; no PDF extraction); a second, independent reading of the same bytes agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
The Florida Statutes
- § 738.401, Fla. Stat.Character of receipts from entity.Printed as s. 738.401
- § 738.409, Fla. Stat.Deferred compensation, annuity, or similar payment.Printed as s. 738.409
- § 738.411, Fla. Stat.Minerals, water, and other natural resources.Printed as s. 738.411
- § 738.412, Fla. Stat.Timber.Printed as s. 738.412
Cited by 4 provisions
Provisions in this library whose text cites § 738.410, Fla. Stat.. Each shows the citation as that text prints it.
The Florida Statutes
- § 738.102, Fla. Stat.Definitions.Printed as ss. 738.410 and 738.602
- § 738.406, Fla. Stat.Receipt on obligation to be paid in money.Printed as s. 738.410
- § 738.408, Fla. Stat.Insubstantial allocation not required.Printed as s. 738.410
- § 738.503, Fla. Stat.Transfers from income to principal for depreciation.Printed as s. 738.410
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.