Sec. 14. (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.
As added by P.L.84-2002, SEC.2. Amended by P.L.51-2014, SEC.12.
Structure Indiana Code
Title 30. Trusts and Fiduciaries
Chapter 14. Uniform Principal and Income Act
30-2-14-0.1. Application of Chapter; Application of Certain Amendments to Chapter
30-2-14-1. "Accounting Period" Defined
30-2-14-2. "Beneficiary" Defined
30-2-14-5. "Income Beneficiary" Defined
30-2-14-6. "Income Interest" Defined
30-2-14-7. "Mandatory Income Interest" Defined
30-2-14-8. "Net Income" Defined
30-2-14-10. "Principal" Defined
30-2-14-11. "Remainder Beneficiary" Defined
30-2-14-12. "Terms of a Trust"
30-2-14-13.5. Personal Representative as a Fiduciary
30-2-14-14. Allocating Receipts and Disbursements Between Principal and Income
30-2-14-15. Power of Trustee to Adjust Between Principal and Income
30-2-14-16. Notice of Proposed Action
30-2-14-17. Discretionary Powers of Fiduciary; Failure to Exercise Power; Remedies
30-2-14-18. Distributions to Beneficiaries; Payment of Fees and Costs
30-2-14-19. Beneficiary's Share of Net Income
30-2-14-20. Income Interest; Asset Subject to Trust
30-2-14-21. Income Receipts and Disbursements
30-2-14-22. Termination of Mandatory Income Interest
30-2-14-23. Receipts From an Entity
30-2-14-24. Distributions of Principal and Income From Trust or Estate
30-2-14-25. Separate Accounting Records for Business or Activity
30-2-14-26. Receipts and Property Allocated to Principal
30-2-14-27. Rental Property Receipts
30-2-14-28. Obligation to Pay Money to Trustee
30-2-14-29. Life Insurance Policy Proceeds; Proceeds of Other Contracts
30-2-14-30. Insubstantial Allocation Between Principal and Income
30-2-14-31. Allocating Payments to Principal or Income
30-2-14-32. Receipts From Liquidating Asset
30-2-14-33. Receipts From an Interest in Minerals or Other Natural Resources
30-2-14-34. Net Receipts From the Sale of Timber and Related Products
30-2-14-35. Marital Deduction for Trust Assets
30-2-14-36. Transactions in Derivatives; Granting, Acquiring, or Exercising an Option
30-2-14-37. Asset Backed Securities
30-2-14-38. Disbursements From Income
30-2-14-39. Disbursements From Principal