Sec. 0.1. (a) This chapter applies to the following: (1) Every trust existing on or created after January 1, 2003, except as otherwise expressly provided in this chapter or by the terms of the trust. (2) Every decedent’s estate existing on or created after January 1, 2003, to the extent that under other applicable law […]
Sec. 1. As used in this chapter, “accounting period” means a calendar year unless another twelve (12) month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve (12) month period that begins when an income interest begins or ends when an income interest ends. As added […]
Sec. 10. As used in this chapter, “principal” means property that is held in trust for distribution to a remainder beneficiary when the trust terminates or that will remain perpetually vested in the trustee. As added by P.L.84-2002, SEC.2.
Sec. 11. As used in this chapter, “remainder beneficiary” means a person entitled to receive principal when an income interest ends. As added by P.L.84-2002, SEC.2.
Sec. 12. As used in this chapter, “terms of a trust” means the manifestation of the intent of: (1) a settlor with respect to a trust; or (2) a decedent with respect to a trust established under the decedent’s will; expressed in a manner that admits of its proof in a judicial proceeding, whether by […]
Sec. 13. As used in this chapter, “trustee” includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court. As added by P.L.84-2002, SEC.2.
Sec. 13.5. A personal representative, including an executor, an administrator, a successor personal representative, a special administrator, or a person performing substantially the same function with respect to a decedent’s estate, is a fiduciary for purposes of this chapter if: (1) under the terms of a decedent’s will this chapter applies to the administration of […]
Sec. 14. (a) The following applies to a fiduciary in allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of this chapter: (1) A fiduciary shall administer a trust or estate in accordance with the terms of the trust or the will, even if there […]
Sec. 15. (a) A trustee may adjust between principal and income to the extent the trustee considers necessary if: (1) the trustee invests and manages trust assets as a prudent investor; (2) the terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust’s income; […]
Sec. 16. (a) A trustee may give a notice of proposed action regarding a matter governed by this chapter as set forth in this section. For purposes of this section, a proposed action includes a course of action and a decision not to take action. (b) The trustee shall mail notice of the proposed action […]
Sec. 17. (a) A court shall not change a fiduciary’s 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 court shall not determine that a fiduciary abused its discretion merely because the court would have exercised […]
Sec. 18. (a) After an income interest in a trust ends, the following rules apply: (1) A fiduciary of a terminating income interest shall determine the amount of net income and net principal receipts received from property specifically given to a beneficiary under the rules in sections 20 through 43 of this chapter that apply […]
Sec. 19. (a) Each beneficiary described in section 18(a)(4) of this chapter is entitled to receive a portion of the net income equal to the beneficiary’s fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one (1) distribution of assets to beneficiaries to whom this […]
Sec. 2. As used in this chapter, “beneficiary” includes, in the case of: (1) a decedent’s estate, an heir, and a devisee; and (2) a trust, an income beneficiary, and a remainder beneficiary. As added by P.L.84-2002, SEC.2.
Sec. 20. (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 trust or successive income interest. (b) […]
Sec. 21. (a) A trustee shall allocate an income receipt or disbursement other than one to which section 18(a)(1) of this chapter applies to principal if its due date occurs before: (1) an individual dies in the case of an estate; or (2) an income interest begins in the case of a trust or successive […]
Sec. 22. (a) As used in this section, “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 added to principal under […]
Sec. 23. (a) As used in this section, “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. The term does not include the following: (1) A trust or an estate to which section 24 of […]
Sec. 24. A trustee shall allocate to: (1) income an amount received as a distribution of income; and (2) principal an amount received as a distribution of principal; from a trust or an estate in which the trust has an interest other than a purchased interest. If a trustee purchases an interest in a trust […]
Sec. 25. (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 maintain separate accounting records for its […]
