Vermont § 3362 - Timber

§ 3362. Timber

• (a) To the extent that a trustee accounts for receipts from the sale of timber and related
  products pursuant to this section, the trustee shall allocate the net receipts: (1) to income to the extent that the amount of timber removed from the land does not exceed
  the rate of growth of the timber during the accounting periods in which a beneficiary
  has a mandatory income interest; (2) to principal to the extent that the amount of timber removed from the land exceeds
  the rate of growth of the timber or the net receipts are from the sale of standing
  timber; (3) to or between income and principal if the net receipts are from the lease of timberland
  or from a contract to cut timber from land owned by a trust, by determining the amount
  of timber removed from the land under the lease or contract and applying the rules
  in subdivision (1) and (2) of this subsection; or (4) to principal to the extent that advance payments, bonuses, and other payments are
  not allocated pursuant to subdivision (1), (2), or (3) of this subsection. (b) In determining net receipts to be allocated pursuant to subsection (a) of this section,
  a trustee shall deduct and transfer to principal a reasonable amount for depletion. (c) This chapter applies whether or not a decedent or transferor was harvesting timber
  from the property before it become subject to the trust. (d) If a trust owns an interest in timberland on July 1, 2012, the trustee may allocate
  net receipts from the sale of timber and related products as provided in this chapter
  or in the manner used by the trustee before July 1, 2012. If the trust acquires an
  interest in timberland after July 1, 2012, the trustee shall allocate net receipts
  from the sale of timber and related products as provided in this chapter. (Added 2011, No. 114 (Adj. Sess.), § 1.)