§ 9:2158 — Power to adjust

§2158. Power to adjust
A. A trustee may make an adjustment between principal and income when the
interest of one or more beneficiaries is defined by reference to the "income" of a trust, and
the trustee determines, after taking into account the allocations for the year under Subpart D
of this Part, that the adjustment is necessary in order for the trustee to satisfy his duty to be
fair and reasonable to all the beneficiaries, taking into account the purposes of the trust.
B. When income is distributed during the year, the income can be determined based
on the adjustment to be made for the year. The adjustment to be made for the year can be
determined in a way that causes the total amount distributed to the income beneficiary during
the year to be equal to a percentage of the value of the trust property at the end of the prior
year or at the end of an average of up to three prior years.
C. The authority to make an adjustment under this Section is subject to the
limitations set forth hereafter in this Subpart.

Legislative History

Acts 2001, No. 520, §4; Acts 2015, No. 219, §1.