55-277.31 - Expenses and receipts; nontrust estates.
§ 55-277.31. Expenses and receipts; nontrust estates.
A. The provisions of this chapter concerning the allocation and apportionmentof receipts and expenses to principal and income shall govern the allocationand apportionment of receipts and expenses between a tenant and aremainderman where no trust has been created, except as otherwise provided insubsection B or C, and except for any provision that requires the exercise ofa discretionary power by a trustee.
B. The cost of, or special taxes or assessments for, an improvementrepresenting an addition of value to property forming part of the principalshall be paid by the tenant, when such improvement cannot reasonably beexpected to outlast the estate of the tenant. In all other cases a portionthereof only shall be paid by the tenant, while the remainder shall be paidby the remainderman. Such portion shall be ascertained by taking thatpercentage of the total which is found by dividing the present value of thetenant's estate by the present value of an estate corresponding to thereasonably expected duration of the improvement. The computation of presentvalues of the estate shall be made on the expectancy basis set forth in §55-269.1 and no other evidence of duration or expectancy shall be considered.When either tenant or remainderman has incurred an expense for the benefit ofhis own estate and without the consent or agreement of the other, he shallpay such expense in full.
C. The rules of this section are subject to any agreement of the parties.
(1999, c. 975.)