Vermont § 3364 - Derivatives and options

§ 3364. Derivatives and options

• (a) As used in this section, “derivative” means a contract or financial instrument or
  a combination of contracts and financial instruments which gives a trust the right
  or obligation to participate in some or all changes in the price of a tangible or
  intangible asset or group of assets, or changes in a rate, an index of prices or rates,
  or other market indicator for an asset or a group of assets. (b) To the extent that a trustee does not account under section 3353 of this title for transactions in derivatives, the trustee shall allocate to principal receipts
  from and disbursements made in connection with those transactions. (c) If a trustee grants an option to buy property from the trust, whether or not the trust
  owns the property when the option is granted, grants an option that permits another
  person to sell property to the trust, or acquires an option to buy property for the
  trust or an option to sell an asset owned by the trust, and the trustee or other owner
  of the asset is required to deliver the asset if the option is exercised, an amount
  received for granting the option must be allocated to principal. An amount paid to
  acquire the option must be paid from principal. A gain or loss realized upon the exercise
  of an option, including an option granted to a settlor of the trust for services rendered,
  must be allocated to principal. (Added 2011, No. 114 (Adj. Sess.), § 1.)