Section 16364.
Cal. Probate Code - PROB § 16364.
in effect(a)
If a fiduciary makes or expects to make a principal disbursement described in subdivision (b), 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.
(b)
To the extent a fiduciary has not been, and does not expect to be, reimbursed by a third party, principal disbursements to which subdivision (a) applies include all of the following:
(1)
An amount chargeable to income but paid from principal because income is not sufficient.
(2)
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.
(3)
A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions.
(4)
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.
(5)
A disbursement described in subdivision (a) of Section 16361.
(c)
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 subdivision (a).
References
referencesCal. Probate Code - PROB § 16361.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026