Section 564-C:1-101 – Short Title.

    564-C:1-101 Short Title. – This chapter may be cited as the Uniform Principal and Income Act. Source. 2006, 320:68, eff. Aug. 19, 2006.

Section 564-C:1-102 – Definitions.

    564-C:1-102 Definitions. – In this chapter: (1) " Accounting period " means a calendar year unless another 12-month period is selected by a fiduciary. The term includes a portion of a calendar year or other 12-month period that begins when an income interest begins or ends when an income interest ends. (2) "Beneficiary" includes, […]

Section 564-C:1-103 – Fiduciary Duties; General Principles.

    564-C:1-103 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 […]

Section 564-C:1-104 – Trustee’s Power to Adjust.

    564-C:1-104 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 […]

Section 564-C:1-105 – Judicial Control of Discretionary Power.

    564-C:1-105 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 […]

Section 564-C:1-106 – Trustee’s Power to Convert to Unitrust.

    564-C:1-106 Trustee’s Power to Convert to Unitrust. – (a) Unless expressly prohibited by the terms of the trust, a trustee may convert a trust into a unitrust as described in this section if all of the following apply: (1) The trustee determines that the conversion will enable the trustee to better carry out the […]

Section 564-C:2-201 – Determination and Distribution of Net Income.

    564-C:2-201 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 […]

Section 564-C:2-202 – Distribution to Residuary and Remainder Beneficiaries.

    564-C:2-202 Distribution to Residuary and Remainder Beneficiaries. – (a) Each beneficiary described in RSA 564-C:2-201(4) 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 distribution of assets to beneficiaries […]

Section 564-C:3-301 – When Right to Income Begins and Ends.

    564-C:3-301 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 […]

Section 564-C:3-302 – Apportionment of Receipts and Disbursements When Decedent Dies or Income Interest Begins.

    564-C:3-302 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 RSA 564-C:2-201(1) applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest […]

Section 564-C:3-303 – Apportionment When Income Interest Ends.

    564-C:3-303 Apportionment When Income Interest Ends. – (a) 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 […]

Section 564-C:4-401 – Character of Receipts.

    564-C:4-401 Character of Receipts. – (a) 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 other than a trust or estate to which RSA 564-C:4-402 applies, a business or […]

Section 564-C:4-402 – Distribution from Trust or Estate.

    564-C:4-402 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 […]

Section 564-C:4-403 – Business and Other Activities Conducted by Trustee.

    564-C:4-403 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 […]

Section 564-C:4-404 – Principal Receipts.

    564-C:4-404 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; […]

Section 564-C:4-405 – Rental Property.

    564-C:4-405 Rental Property. – To the extent that a trustee accounts for receipts from rental property pursuant to this section and not as provided in RSA 564-C:4-403, 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. […]

Section 564-C:4-406 – Obligation to Pay Money.

    564-C:4-406 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) An amount […]

Section 564-C:4-407 – Insurance Policies and Similar Contracts.

    564-C:4-407 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 […]

Section 564-C:4-407A – Charitable Remainder Unitrusts.

    564-C:4-407A Charitable Remainder Unitrusts. – (a) In the case of a charitable remainder unitrust within the meaning of section 664(d)(2) of the Internal Revenue Code, in which the trust instrument contains an income exception described in section 664(d)(3) of the Internal Revenue Code, the trustee shall allocate receipts from each of the following assets […]

Section 564-C:4-408 – Insubstantial Allocations Not Required.

    564-C:4-408 Insubstantial Allocations Not Required. – (a) If a trustee determines that an allocation between principal and income required by RSA 564-C:4-409, 410, 411, 412, or 415 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in RSA 564-C:1-104(c) applies to the allocation. This power may […]