Indiana Code - Trusts and Fiduciaries - Title 30, Section 30-2-14-25

Separate accounting records for business or activity

Sec. 25. (a) If a trustee who conducts a business or other activity
determines that it is in the best interest of all the beneficiaries to
account separately for the business or activity instead of accounting
for it as part of the trust's general accounting records, the trustee may
maintain separate accounting records for its transactions, whether or
not its assets are segregated from other trust assets.
(b) A trustee who accounts separately for a business or other
activity may determine the extent to which:
(1) its net cash receipts must be retained for:
(A) working capital;
(B) the acquisition or replacement of fixed assets; and
(C) other reasonably foreseeable needs of the business or
activity; and
(2) the remaining net cash receipts are accounted for as
principal or income in the trust's general accounting records.
If a trustee sells assets of the business or other activity, other than in
the ordinary course of the business or activity, the trustee shall
account for the net amount received as principal in the trust's general
accounting records to the extent the trustee determines that the
amount received is no longer required in the conduct of the business.
(c) Activities for which a trustee may maintain separate
accounting records include:
(1) retail, manufacturing, service, and other traditional business
activities;
(2) farming;
(3) raising and selling livestock and other animals;
(4) management of rental properties;
(5) extraction of minerals and other natural resources;
(6) timber operations; and
(7) activities to which section 36 of this chapter applies.
As added by P.L.84-2002, SEC.2.

Last modified: May 27, 2006