(a) Allocation.--In allocating receipts and disbursements to or between principal and income and with respect to any matter within the scope of this chapter, the following shall apply:
(1) A fiduciary shall administer a trust or estate in accordance with the governing instrument, 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 regarding a matter within the scope of this chapter given to the fiduciary by the governing instrument, even if the exercise of the power produces a result different from a result required or permitted by this chapter. No inference that the fiduciary has improperly exercised the discretionary power shall arise from the fact that the fiduciary has made an allocation contrary to a provision of this chapter.
(3) A fiduciary shall administer a trust or estate in accordance with this chapter if the governing instrument does not contain a different provision or does not give the fiduciary a discretionary power of administration regarding a matter within the scope of this chapter.
(4) A fiduciary shall add a receipt or charge a disbursement to principal to the extent that the governing instrument and this chapter do not provide a rule for allocating the receipt or disbursement to or between principal and income.
(b) Discretionary power.--In exercising a discretionary power of administration regarding a matter within the scope of this chapter, whether granted by the governing instrument or this chapter, including sections 8104 (relating to trustee's power to adjust) and 8105 (relating to power to convert to unitrust), 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 governing instrument clearly manifests an intention that the fiduciary shall or may favor one or more of the beneficiaries. A determination in accordance with this chapter is presumed to be fair and reasonable to all of the beneficiaries.
Cross References. Section 8103 is referred to in section 8104 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 81 - Principal and Income
Section 8101 - Short title of chapter
Section 8103 - Fiduciary duties; general principles
Section 8104 - Trustee's power to adjust
Section 8105 - Power to convert to unitrust
Section 8106 - Judicial control of discretionary powers
Section 8113 - Charitable trusts
Section 8121 - Determination and distribution of net income
Section 8122 - Distribution to residuary and remainder beneficiaries
Section 8131 - When right to income begins and ends
Section 8133 - Apportionment when income interest ends
Section 8141 - Character of receipts
Section 8142 - Distribution from trust or estate
Section 8143 - Business and other activities conducted by trustee
Section 8144 - Principal receipts
Section 8145 - Rental property
Section 8146 - Obligation to pay money
Section 8147 - Insurance policies and similar contracts
Section 8148 - Insubstantial allocations not required
Section 8150 - Liquidating asset
Section 8151 - Minerals, water and other natural resources
Section 8153 - Property not productive of income
Section 8154 - Derivatives and options
Section 8155 - Asset-backed securities
Section 8161 - Mandatory disbursements from income
Section 8162 - Mandatory disbursements from principal
Section 8163 - Discretionary allocation of disbursements
Section 8164 - Transfers from income to principal for depreciation
Section 8165 - Transfers from income to reimburse principal
Section 8167 - Adjustments between principal and income because of taxes