ACTING PRINCIPAL DEFINITION PLUS

(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 specifically given to a beneficiary under the rules in parts 3 through 5 which apply to trustees and the rules in paragraph В§ 11-A-2.1 Determination and distribution of net incomeДЄfter a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply: DECEDENTвЂ™S ESTATE OR TERMINATING INCOME INTEREST A determination in accordance with this article is presumed to be fair and reasonable to all of the beneficiaries. (b) In exercising a discretionary power of administration regarding a matter within the scope of this article, whether granted by the terms of a trust, a will, or this article, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trustВ or the will clearly manifest an intention that the fiduciary shall or may favor one or more of the beneficiaries. (4) shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust or the will and this article do not provide a rule for allocating the receipt or disbursement to or between principal and income. (3) shall administer a trust or estate in accordance with this article if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration and (2) may administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this article

(1) shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this article (a) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of parts 2 and 3, a fiduciary: В§ 11-A-1.3 Fiduciary duties general principles (13) вЂњTrusteeвЂќ includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court. (12) вЂњTerms of a trustвЂќ means the manifestation of the intent of a settlor or decedent with respect to the trust, expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct.

(11) вЂњRemainder beneficiaryвЂќ means a person entitled to receive principal when an income interest ends. (10) вЂњPrincipalвЂќ means property held in trust for distribution to a remainder beneficiary when the trust terminates.

(9) вЂњPersonвЂќ means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government governmental subdivision, agency, or instrumentality public corporation, or any other legal or commercial entity.

ACTING PRINCIPAL DEFINITION PLUS

(8) вЂњNet incomeвЂќ means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under this article or under subparagraph 11-2.3(b)(5) to or from income during the period. (7) вЂњMandatory income interestвЂќ means the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute. (6) вЂњIncome interestвЂќ means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trusteeвЂ™s discretion. (5) вЂњIncome beneficiaryвЂќ means a person to whom net income of a trust is or may be payable. Receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in part 4. (4) вЂњIncomeвЂќ means money or property that a fiduciary receives as current return from a principal asset. The term includes an executor, administrator, successor personal representative, and a person performing substantially the same function. (3) вЂњFiduciaryвЂќ means a personal representative or trustee. (2) вЂњBeneficiaryвЂќ includes, in the case of a decedentвЂ™s estate,В a distributee and testamentary beneficiary and, in the case of a trust, an income beneficiary and a remainder beneficiary. 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. (1) вЂњAccounting periodвЂќ means a calendar year unless another twelve- month period is selected by a fiduciary. This article may be cited as the New York uniform principal and income act.

Acting principal definition