Application of the Uniform Principal and Income Act Rules in New York State

• Author: Seymour Goldberg
• Profession: Senior partner in the law firm of Goldberg & Goldberg, P.C., in Woodbury, New York
• Pages: 107-108

The 1997 version of the model UPAIA has been adopted by over 40 states,

with different effective dates.

New York State adopted a version of the act effective as of January 1,

2002, and has made changes from time to time.

In addition, New York State law permits both the power-of-adjustment

and unitrust rules to be used. The unitrust provisions are not part of the

UPAIA but are contained in separate provisions of the New York State

trust law. Also, the power-to-adjust provisions are not part of the New

York UPAIA but are contained in separate provisions of the New York

State trust laws.

Each state’s trust laws must be examined to determine the rules and

effective dates of the rules that apply to trusts that are subject to the laws

of that state.

The following are only a few examples of the trust accounting rules

based on New York State trust law as it generally exists in 2013. Please

note that periodic changes are made to the New York trust laws from time

to time and may alter the suggested answers described in this book. The

adviser to the trustee must read and analyze the trust laws that control

the trust terms in a given state.

It should be noted that many states have adopted different versions of

the 1997 UPAIA with different effective dates. In addition, many states

have periodically changed their laws from time to time, with different

effective dates as well.

The trust adviser has to keep up with the changes and advise the trustee

as to the effective dates of the changes. This makes it difcult since the

107

APPLICATION OF THE UNIFORM

PRINCIPAL AND INCOME ACT

RULES IN NEW YORK STATE