Legislative Session number- 82

Bill Name: SF0666

Relating to uniform laws ARTICLE 1 - DEFINITIONS AND FIDUCIARY DUTIES Enacting
the "Uniform Principal and Income Act (1997)", providing a uniform set of laws
governing principal and income; defining certain terms; specifying certain
duties of fiduciaries and certain general principles, creating a presumption of
fairness and reasonableness under the act; specifying the power of trustees to
adjust between principal and income, specifying certain factors to be considered
for decision making purposes; prohibiting or restricting certain adjustments;
providing for judicial control of discretionary powers of fiduciaries under
certain conditions ARTICLE 2 - DECEDENT'S ESTATE OR TERMINATING INCOME INTEREST
Providing for the determination and distribution of net income to residuaries
and beneficiaries after death of the decedent or end of income interest in a
trust, specifying certain recordkeeping requirements ARTICLE 3 - APPORTIONMENT
AT BEGINNING AND END OF INCOME INTEREST Specifying the entitlement of income
beneficiaries to net income and the beginning date of income interest;
subjecting assets to trusts and to successive income interest on certain dates;
specifying the ending date of income interest; providing for the apportionment
of receipts and disbursements upon the death or the decedent or on the beginning
and ending dates of income interest ARTICLE 4 - ALLOCATION OF RECEIPTS DURING
ADMINISTRATION OF TRUST PART 1 - RECEIPTS FROM ENTITIES: Providing for the
character of receipts, specifying certain allocation requirements of trustees;
authorizing the maintenance of separate accounting records for business and
other activities under certain conditions PART 2 - RECEIPTS NOT NORMALLY
APPORTIONED Providing for trustee allocation of principal, rental property and
certain money obligation receipts and life insurance policy or contract proceeds
PART 3 - RECEIPTS NORMALLY APPORTIONED Providing for trustee allocation of
insubstantial principal and income allocations, of deferred compensation,
annuities and similar payments, of liquidating assets, of receipts from
minerals, water, timber and other natural resources, of assets from certain
property not productive of income, of certain derivatives and options and of
asset backed securities ARTICLE 5 - ALLOCATION OF DISBURSEMENTS DURING
ADMINISTRATION OF TRUST Specifying certain income and principal disbursement
requirements of trustees, authorizing certain transfers from income to principal
for depreciation and to reimburse principal; providing for the payment of income
taxes; authorizing fiduciary adjustments between principal and income to offset
the shifting of economic interests or tax benefits between income and remainder
beneficiaries; applying the provisions to existing trusts and estates; repealing
the existing uniform principal and income act (ra)