Section 55-13A-101 – Short title.
55-13A-101. Short title. This chapter may be cited as the Uniform Principal and Income Act. Source: SL 2007, ch 282, §1.
Section 55-13A-102 – Definitions.
55-13A-102. Definitions. In this chapter: (1)”Accounting period” means a calendar year unless another twelve-month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve-month period that begins when an income interest begins or ends when an income interest ends; (2)”Beneficiary” includes, in the case of a decedent’s […]
Section 55-13A-103 – Fiduciary duties–General principles.
55-13A-103. Fiduciary duties–General principles. (a) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of Articles 2 and 3, a fiduciary: (1)Shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different […]
Section 55-13A-104 – Trustee’s power to adjust.
55-13A-104. Trustee’s power to adjust. (a) A trustee may adjust between principal and income to the extent the trustee considers necessary if the trustee invests and manages trust assets as a prudent investor, the terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust’s […]
Section 55-13A-105 – Judicial control of discretionary power.
55-13A-105. Judicial control of discretionary power. (a) The court may not order a fiduciary to change a decision to exercise or not to exercise a discretionary power conferred by this chapter unless it determines that the decision was an abuse of the fiduciary’s discretion. A fiduciary’s decision is not an abuse of discretion merely because […]
Section 55-13A-201 – Determination and distribution of net income.
55-13A-201. Determination and distribution of net income. After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply: (1)A fiduciary of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property […]
Section 55-13A-202 – Distribution to residuary and remainder beneficiaries.
55-13A-202.Distribution to residuary and remainder beneficiaries. (a) Notwithstanding any contrary provision of this chapter, if the trust instrument adopts the provisions of this section by reference, an increase in the value of the following investments owned by a charitable remainder unitrust, of the type authorized in §664(d)(3) of the Internal Revenue Code (26 U.S.C. §664), […]
Section 55-13A-301 – When right to income begins and ends.
55-13A-301. When right to income begins and ends. (a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a […]
Section 55-13A-302 – Apportionment of receipts and disbursements when decedent dies or income interest begins.
55-13A-302. Apportionment of receipts and disbursements when decedent dies or income interest begins. (a) A trustee shall allocate an income receipt or disbursement other than one to which §55-13A-201(1) applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the […]
Section 55-13A-303 – Apportionment when income interest ends.
55-13A-303. Apportionment when income interest ends. (a) In this section, the term, undistributed income, means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be […]
Section 55-13A-401 – Character of receipts.
55-13A-401. Character of receipts. (a) In this section, the term, entity, means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which §55-13A-402 applies, a business or activity to which […]
Section 55-13A-402 – Distribution from trust or estate.
55-13A-402. Distribution from trust or estate. A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust […]
Section 55-13A-403 – Business and other activities conducted by trustee.
55-13A-403. Business and other activities conducted by trustee. (a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust’s general accounting records, the trustee may […]
Section 55-13A-404 – Principal receipts.
55-13A-404. Principal receipts. A trustee shall allocate to principal: (1)To the extent not allocated to income under this chapter, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary; (2)Money or other […]
Section 55-13A-405 – Rental property.
55-13A-405. Rental property. To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a […]
Section 55-13A-406 – Obligation to pay money.
55-13A-406. Obligation to pay money. (a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium. (b) A trustee shall allocate […]
Section 55-13A-407 – Insurance policies and similar contracts.
55-13A-407. Insurance policies and similar contracts. (a) Except as otherwise provided in subsection (b), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage […]
Section 55-13A-408 – Insubstantial allocations not required.
55-13A-408. Insubstantial allocations not required. If a trustee determines that an allocation between principal and income required by §55-13A-409, 55-13A-410, 55-13A-411, 55-13A-412, or 55-13A-415 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in §55-13A-104(c) applies to the allocation. This power may be exercised by a cotrustee […]
Section 55-13A-409 – Deferred compensation, annuities, and similar payments.
55-13A-409. Deferred compensation, annuities, and similar payments. (a) For the purposes of this section, the term, payment, means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payer in exchange for future payments. […]
Section 55-13A-410 – Liquidating asset.
55-13A-410. Liquidating asset. (a) In this section, the term, liquidating asset, means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one […]