Allocation od Expenses

Question 1

Expenses Charged to Income

Answer 1

The following expenses are charged against income: one-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee; one-half of
all expenses for accountings, judicial proceedings, and other matters affecting both income and remainder interests; the entire cost of ordinary expenses; and insurance premiums covering the loss of a
principal asset.

Question 2

Expenses Charged to Principal

Answer 2

The following expenses are charged against principal: the remaining one-half of the compensation of the trustee and any person providing investment advisory or custodial services to the trustee; the remaining one-half of all expenses for accountings, judicial
proceedings, and other matters affecting both income and remainder interests; payments on the principal of a trust debt; expenses of a proceeding that concerns primarily an interest in principal; estate taxes; and disbursements related to environmental matters.