In general terms, a principal and income act is a set of accounting rules to be used by trustees and other fiduciaries, such as estate executors, in allocating receipts and expenditures of the estate or trust between the entitys principal and income accounts. Highlights include an expansion of the use of the power to adjust between income and principal in section 203, the addition of provisions for. The uniform law commissioners approved a revised uniform principal and income act in the summer of 1997, and the act is currently in different stages of the. Terms used in kansas statutes chapter 58 article 9. Repealed and reenacted by chapter 495, 2019 general session superseded 712020 223102 definitions. Distinguishing income from principal is not always selfevident. Most states have adopted a form of one of the three uniform principal and income acts. This act may be cited as the uniform fiduciary 5 income and principal act.
Check the sections youd like to appear in the report, then use the create report button at the bottom of the page to generate your report. This section is deleted as unnecessary because of the titlewide application of 1244, which states that the caption of a subtitle, chapter, or article serves as a short title citation. Permit a trustee to convert a trust to a unitrust 8105 o. Utah code uniform principal and income act effective 712020. The uniform law commissioners promulgated the first uniform principal and income act in 1931. Chapter 10 uniform principal and income act download entire chapter pdf part 1. It is designed to provide trustees with procedures for separating principal and income and ensuring that the intention of settlors will be carried out. Nc adopted the 97 version of the upia effective january 1, 2004. The general statutes include changes through september 27, 2019. Principal and income act 2000 uniform law commission. Sep 27, 2019 chapter 37a uniform principal and income act.
Uniform principal and income act the committee that acted for the national conference of commissioners on uniform state laws in preparing the uniform principal and income act was as follows. The term includes a portion of a calendar year or other twelvemonth period that begins when an income interest begins or ends when an income interest. Obsolescence over time is not the only stimulus for promulgating upia 1997. Allocation of disbursements during administration of trust 1637016375. To or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by. Enacted by chapter 285, 2004 general session effective 712020 223101 title. Uniform principal and income act as revised in 1997 by the uniform law commission then the national conference of commissioners on uniform state laws.
If the trust is intended to qualify for the marital deduction, many states have provisions in their principal and income laws providing an exception from the rule in the uniform principal and income act that would treat 90% of the required distribution as principal, and if not, then the trust should contain an exception. Principal and income report joint state government. Therefore, the law has provided trustees with statutory help for a very long period of time. The uniform principal and income act is one of a large number of uniform laws proposed by the uniform law commission in an effort to make the laws of the various states more consistent. The uniform principal and income act upaia is one of the uniform acts that have been promulgated in an attempt to harmonize the law in all fifty u. Section 7 distribution to residuary and remainder beneficiaries. The act requires that money received from certain types of business entities be allocated to income, but provides that money received in total or partial liquidation of. Section 5 judicial control of discretionary powers. Final act, with comments 0 recommend attachments rupia00. The term includes a portion of a calendar year or other 12month. The uniform principal and income act, promulgated by the uniform law commissioners a group of law professors and lawyers from around the country has been adopted in 41 states. The change in the name of this uniform act has three purposes and effects. Two prior versions of the uniform principal and income act had been proposed by the commission in 1931 and 1962, which were adopted in fortyone states. Accounting period means a calendar year unless another twelvemonth period is selected by a fiduciary.
The definitions in this article govern the construction of this chapter. The drafters of the uniform act stated two primary reasons for the 1997 revision. Section 6 determination and distribution of net income. Uniform principal and income act act 159 of 2004 an act. The term includes a portion of a calendar year or other.
B in applying and construing the uniform principal and income act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact the uniform principal and income. Sections 45a542 to 45a542ff, inclusive, may be cited as the connecticut principal and income act 1999. Enact the pennsylvania uniform principal and income act as chapter 81 of title 20. This chapter is known as the uniform fiduciary income and principal act. Incorporate the concept of the principal place of the trusts administration as the primary basis for determining the situs of the trust 724 o. Uniform fiduciary income and principal act amendments chief.
Check the sections youd like to appear in the report, then use the create report button at the bottom of the page to generate your. Chapter 17 mississippi principal and income act of 20. State of new jersey new jersey law revision commission draft. Apportionment at beginning and end of income interest. First, they sought to update the provisions of the 1931 uniform principal and income act and the 1962 revised uniform principal and income act4 and, in so doing, to facilitate the already widespread use of revocable trust agreements as will substitutes. This chapter may be cited as the uniform principal and income act. In the 1990s and especially since the promulgation of the uniform prudent investor act in 1994, a trustees obligation to invest the assets of a trust as a. The term includes a portion of a calendar year or other twelvemonth period that begins when an income interest begins or ends when an income interest ends. Principal and income act 2000 view only home discussion 0. A periodic usually annual payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. Short title and definitions 1632016328 short title and definitions. See, assembly banking and insurance committee statement, n. Download entire chapter pdf chapter 9 simplification of fiduciary security transfers download entire chapter pdf chapter 10 uniform principal and income act download entire chapter pdf chapter 11 uniform testamentary additions to trusts act repealed chapter 12 private foundations and charitable trusts download entire chapter pdf. This subchapter may be cited as the wisconsin uniform principal and income act.
As they did with the vermont trust code, they worked with the most recent version of the model statute put. A discussion of the uniform law commissions new uniform fiduciary income and principal act, ufipa, created in july 2018. Questions about the california uniform principal and income act can be directed to calcpa member william downs. Utah code uniform principal and income act effective 71. After all, this income versus principal distinction assists in answering the who gets what question as to the economic. I have had an interest in writing about issues on the accounting for estates and trusts, especially the incomeprincipal distinction which is articulated in the uniform principal and income act upia adopted by most states. Title 68 trusts and fiduciaries idaho state legislature. Uniform principal and income act upia summary of concepts june 5, 2012 the vermont bar and bankers associations collaborated for two years on modernizing the states very old uniform principal and income act. Drafting committee on uniform principal and income act the committee that acted for the national conference of commissioners on uniform state laws in preparing the uniform principal and income act was as follows. Act 159 of 2004 an act to enact the uniform principal and income act. The uniform principal and income act, among other things, generally directs a trustee how to allocate money to beneficiaries of an estate or trust as either principal or income. This chapter is known as the uniform principal and income act. The section urged the adoption of texas versions of two of those acts prudent investor and principal and income in 2003, and both were enacted into law. Chapter 3 uniform principal and income act part 1 definitions and.
I have had an interest in writing about issues on the accounting for estates and trusts, especially the income principal distinction which is articulated in the uniform principal and income act upia adopted by most states. This act shall be known and may be cited as the uniform principal and income act. Laws nccusl the uniform prudent investor act of 1994, the uniform principal and income act of 1997 and the uniform trust code of 2000 for more than two years. The uniform fiduciary income and principal act 2018 is an update of the revised uniform principal and income act 1997. Like the 1997 act, it adapts to changes in the design and use of trusts.
Delaware uniform principal and income act subchapter iv. In applying and construing subchapters i through v of this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact the uniform principal and income act. General statutes published on this website are not official. Transfers from income to principal for depreciation. Uniform principal and income act upia 5 fiduciary accounting rules vary from state to state. The 2002 act replaced the revised uniform principal and income act adopted in 1991. The current revision of the former uniform principal and income acts, like the 1997.
290 957 978 476 1072 1130 1250 1313 884 882 1454 697 460 42 574 1046 466 326 510 1193 1524 876 87 369 229 641 504 1446 582 315 23 999 65 241 677 1255