RCW 11.104B.050
Fiduciary duties—General principles.
(1) In making an allocation or determination or exercising discretion under this chapter, a fiduciary shall:
(a) Act in good faith, based on what is fair and reasonable to all beneficiaries;
(b) Administer a trust or estate impartially, except to the extent the terms of the trust manifest an intent that the fiduciary shall or may favor one or more beneficiaries;
(c) Administer the trust or estate in accordance with the terms of the trust, even if there is a different provision in this chapter; and
(d) Administer the trust or estate in accordance with this chapter, except to the extent the terms of the trust provide otherwise or authorize the fiduciary to determine otherwise.
(2) A fiduciary's allocation, determination, or exercise of discretion under this chapter is presumed to be fair and reasonable to all beneficiaries. A fiduciary may exercise a discretionary power of administration given to the fiduciary by the terms of the trust, and an exercise of the power which produces a result different from a result required or permitted by this chapter does not create an inference that the fiduciary abused the fiduciary's discretion.
(3) A fiduciary shall:
(a) Add a receipt to principal, to the extent neither the terms of the trust nor this chapter allocates the receipt between income and principal; and
(b) Charge a disbursement to principal, to the extent neither the terms of the trust nor this chapter allocates the disbursement between income and principal.
(4) A fiduciary may exercise the power to adjust under RCW 11.104B.070, convert an income trust to a unitrust under RCW 11.104B.120(1)(a), change the percentage or method used to calculate a unitrust amount under RCW 11.104B.120(1)(b), or convert a unitrust to an income trust under RCW 11.104B.120(1)(c), if the fiduciary determines the exercise of the power is necessary to administer the trust or estate in accordance with the requirements of subsection (1) of this section.
(5) Factors the fiduciary must consider in making the determination under subsection (4) of this section include:
(a) The terms of the trust;
(b) The nature, distribution standards, and expected duration of the trust;
(c) The effect of the allocation rules, including specific adjustments between income and principal, under Articles 4 through 7 of this chapter;
(d) The desirability of liquidity and regularity of income;
(e) The desirability of the preservation and appreciation of principal;
(f) The extent to which an asset is used or may be used by a beneficiary;
(g) The increase or decrease in the value of principal assets, reasonably determined by the fiduciary;
(h) Whether and to what extent the terms of the trust give the fiduciary power to accumulate income or invade principal or prohibit the fiduciary from accumulating income or invading principal;
(i) The extent to which the fiduciary has accumulated income or invaded principal in preceding accounting periods;
(j) The effect of current and reasonably expected economic conditions; and
(k) The reasonably expected tax consequences of the exercise of the power.
[ 2021 c 140 § 2201.]
Structure Revised Code of Washington
Title 11 - Probate and Trust Law
Chapter 11.104B - Uniform Fiduciary Income and Principal Act.
11.104B.050 - Fiduciary duties—General principles.
11.104B.070 - Fiduciary duties—Power to adjust.
11.104B.100 - Unitrusts—Definitions.
11.104B.110 - Unitrusts—Application—Duties and remedies.
11.104B.120 - Unitrusts—Authority of fiduciary.
11.104B.130 - Unitrusts—Notice.
11.104B.140 - Unitrusts—Unitrust policies.
11.104B.150 - Unitrusts—Unitrust rates.
11.104B.160 - Unitrusts—Applicable value.
11.104B.170 - Unitrusts—Period.
11.104B.180 - Unitrust—Special tax benefits—Other rules.
11.104B.200 - Receipts from entities—Character.
11.104B.210 - Receipts from entities—Distributions from trusts and estates.
11.104B.220 - Receipts from entities—Businesses and other activities conducted by fiduciary.
11.104B.230 - Receipts not normally apportioned—Principal receipts.
11.104B.240 - Receipts not normally apportioned—Rental property.
11.104B.250 - Receipts not normally apportioned—Receipt on obligation to be paid in money.
11.104B.260 - Receipts not normally apportioned—Insurance policies and contracts.
11.104B.270 - Receipts normally apportioned—Insubstantial allocation not required.
11.104B.280 - Receipts normally apportioned—Deferred compensation, annuities, and similar payments.
11.104B.290 - Receipts normally apportioned—Liquidating assets.
11.104B.300 - Receipts normally apportioned—Minerals, water, and other natural resources.
11.104B.310 - Receipts normally apportioned—Timber.
11.104B.320 - Receipts normally apportioned—Marital deduction property not productive of income.
11.104B.330 - Receipts normally apportioned—Derivatives and options.
11.104B.340 - Receipts normally apportioned—Asset-backed securities.
11.104B.350 - Receipts normally apportioned—Other financial instruments and arrangements.
11.104B.400 - Disbursements—Disbursement from income.
11.104B.410 - Disbursements—Disbursement from principal.
11.104B.420 - Disbursements—Transfer from income to principal for depreciation.
11.104B.430 - Disbursements—Reimbursement of income from principal.
11.104B.440 - Disbursements—Reimbursement of principal from income.
11.104B.450 - Disbursements—Income taxes.
11.104B.460 - Disbursements—Adjustment between income and principal because of taxes.
11.104B.500 - Death or termination of interest—Determination and distribution of net income.
11.104B.510 - Death or termination of interest—Distribution to successor beneficiary.
11.104B.550 - Death or termination of interest—When right to income begins and ends.
11.104B.570 - Death or termination of interest—Apportionment when income interest ends.
11.104B.900 - Uniformity of application and construction.
11.104B.901 - Relation to electronic signatures in global and national commerce act.
11.104B.903 - Application of chapter 11.96A RCW.
11.104B.904 - Construction—Chapter applicable to state registered domestic partnerships—2009 c 521.