Indiana § 30-2-14-14 Allocating receipts and disbursements between principal and income

Indiana Statutes

§ 30-2-14-14 — Allocating receipts and disbursements between principal and income

Indiana·Art. 2 GENERAL PROVISIONS·Ch. 14 Uniform Principal and Income Act

(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 is a different provision in this chapter.

(2)A fiduciary 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 chapter. An inference that the fiduciary has improperly exercised the discretion does not arise from the fact that the fiduciary has made or has not made an allocation contrary to

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(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 is a different
provision in this chapter.
(2) A fiduciary 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 chapter. An inference that the fiduciary has improperly
exercised the discretion does not arise from the fact that the
fiduciary has made or has not made an allocation contrary to a
provision of this chapter.
(3) A fiduciary shall administer a trust in accordance with this
chapter if the terms of the trust do not contain a different
provision or do not give the fiduciary a discretionary power of
administration.
(4) A fiduciary shall add a receipt or charge a disbursement to
principal to the extent that the terms of the trust or the will and
this chapter do not provide a rule for allocating the receipt or
disbursement to or between principal and income.
(b) In exercising the power to adjust under section 15 of this chapter
or a discretionary power of administration regarding a matter within the
scope of this chapter, whether granted by the terms of a trust, a will, or
this chapter, a fiduciary shall administer a trust or an estate impartially,
based on what is fair and reasonable to all of the beneficiaries, except
to the extent that the terms of the trust or the will clearly manifest an
intention that the fiduciary shall or may favor one (1) or more of the
beneficiaries. A determination in accordance with this chapter is
presumed to be fair and reasonable to all of the beneficiaries.

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