738.410 Liquidating asset.—(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.History.—s. 1, ch. 2002-42; s. 21, ch. 2012-49; s. 29, ch. 2024-216.Note.—Former s. 738.603.
Florida Legal Code