Section 2-3-801 – Short Title.
2-3-801. Short title. This act shall be known and may be cited as the “Wyoming Uniform Principal and Income Act”.
Section 2-3-802 – Definitions.
2-3-802. Definitions. (a) As used in this act: (i) “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; (ii) “Beneficiary” includes, in […]
Section 2-3-803 – Fiduciary Duties; General Principles.
2-3-803. 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 W.S. 2-3-806 through 2-3-810, a fiduciary: (i) Shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is […]
Section 2-3-804 – Trustee’s Power to Adjust; Liability of Trustee.
2-3-804. Trustee’s power to adjust; liability of trustee. (a) Subject to subsections (b) and (c) of this section, 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 […]
Section 2-3-805 – Notice of Proposed Action; Objections of Beneficiary; Liability of Trustee; Proceedings.
2-3-805. Notice of proposed action; objections of beneficiary; liability of trustee; proceedings. (a) Unless a trust instrument requires otherwise, a trustee may give notice of proposed action regarding a matter governed by this act as provided in this section. For the purpose of this section, a proposed action includes a course of action and a […]
Section 2-3-806 – Determination and Distribution of Net Income.
2-3-806. Determination and distribution of net income. (a) After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply: (i) A fiduciary of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received […]
Section 2-3-807 – Distribution to Residuary and Remainder Beneficiaries.
2-3-807. Distribution to residuary and remainder beneficiaries. (a) Each beneficiary described in W.S. 2-3-806(a)(iv) 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 […]
Section 2-3-808 – When Right to Income Begins and Ends.
2-3-808. 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 2-3-809 – Apportionment of Receipts and Disbursements When Decedent Dies or Income Interest Begins.
2-3-809. 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 W.S. 2-3-806(a)(i) 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 […]
Section 2-3-810 – Apportionment When Income Interest Ends.
2-3-810. 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 to be added to […]
Section 2-3-811 – Character of Receipts.
2-3-811. 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 W.S. 2-3-811 applies, a business or activity to which W.S. […]
Section 2-3-812 – Distribution From Trust or Estate.
2-3-812. 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 2-3-813 – Business and Other Activities Conducted by Trustee.
2-3-813. 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 2-3-814 – Principal Receipts.
2-3-814. Principal receipts. (a) A trustee shall allocate to principal: (i) To the extent not allocated to income under this act, 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; (ii) […]
Section 2-3-815 – Rental Property.
2-3-815. 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 2-3-816 – Obligation to Pay Money.
2-3-816. 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 2-3-817 – Insurance Policies and Similar Contracts.
2-3-817. Insurance policies and similar contracts. (a) Except as otherwise provided in subsection (b) of this section, 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 […]
Section 2-3-818 – Insubstantial Allocation Not Required.
2-3-818. Insubstantial allocation not required. (a) If a trustee determines that an allocation between principal and income required by W.S. 2-3-819 through 2-3-822 or 2-3-825 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in W.S. 2-3-804(c) applies to the allocation. This power may be exercised by […]
Section 2-3-819 – Deferred Compensation, Annuities and Similar Payments.
2-3-819. Deferred compensation, annuities and similar payments. (a) As used in this section: (i) “Payment” means a payment that a trustee may receive over a fixed number of years or during the life of one (1) or more individuals because of services rendered or property transferred to the payer in exchange for future payments. The […]
Section 2-3-820 – Liquidating Asset.
2-3-820. Liquidating asset. (a) In this section, “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 (1) year […]