Appendix III. New York State Uniform Principal and Income Act

• Author: Seymour Goldberg
• Profession: Senior partner in the law firm of Goldberg & Goldberg, PC in Woodbury, New York
• Pages: 125-147

APPENDIX III

NEW YORK STATE

UNIFORM PRINCIPAL

AND INCOME ACT

125

Technical corrections to the law may be made from time to time to clarify

the law or to make changes to the law. Caution: You must periodically

review the law to make sure that no changes were made.

§ 11-A-1.1 Short title

This article may be cited as the New York uniform principal and income

act.

§ 11-A-1.2 Denitions

In this article:

(1)

“Accounting period” means a calendar year unless another

twelve-month period is selected by a duciary. The term includes

a portion of a calendar year or other twelve-month period that

begins when an income interest begins or ends when an income

interest ends.

(2)

“Beneciary” includes, in the case of a decedent’s estate, a distributee

and testamentary beneciary and, in the case of a trust, an income

beneciary and a remainder beneciary.

(3)

“Fiduciary” means a personal representative or trustee. The term

includes an executor, administrator, successor personal representa-

tive, and a person performing substantially the same function.

Goldberg_FundTrust_20140130_16-16_Confirmation Pass.indd 125 2/3/14 4:06 PM

126

(4)

“Income” means money or property that a duciary receives as cur-

rent return from a principal asset. The term includes a portion of

receipts from a sale, exchange, or liquidation of a principal asset, to

the extent provided in part 4.

(5)

“Income beneciary” means a person to whom net income of a trust

is or may be payable.

(6)

“Income interest” means the right of an income beneciary to

receive all or part of net income, whether the terms of the trust

require it to be distributed or authorize it to be distributed in

the trustee’s discretion.

(7)

“Mandatory income interest” means the right of an income bene-

ciary to receive net income that the terms of the trust require the

duciary to distribute.

(8) “Net income” means the total receipts allocated to income during

an accounting period minus the disbursements made from income

during the period, plus or minus transfers under this article or under

subparagraph 11–2.3(b)(5) to or from income during the period.

(9)

“Person” means an individual, corporation, business trust, estate,

trust, partnership, limited liability company, association, joint

venture, government; governmental subdivision, agency, or instru-

mentality; public corporation, or any other legal or commercial

entity.

(10)

“Principal” means property held in trust for distribution to a remain-

der beneciary when the trust terminates.

(11)

“Remainder beneciary” means a person entitled to receive princi-

pal when an income interest ends.

(12)

“Terms of a trust” means the manifestation of the intent of a settlor

or decedent with respect to the trust, expressed in a manner that

admits of its proof in a judicial proceeding, whether by written or

spoken words or by conduct.

(13)

“Trustee” includes an original, additional, or successor trustee,

whether or not appointed or conrmed by a court.

§ 11-A-1.3 Fiduciary duties; general principles

(a)

In allocating receipts and disbursements to or between principal and

| A I II

Goldberg_FundTrust_20140130_16-16_Confirmation Pass.indd 126 2/3/14 4:06 PM