Overview of the UPAIA and Related New York State

• Author: Seymour Goldberg
• Profession: Senior partner in the law firm of Goldberg & Goldberg, PC in Woodbury, New York
• Pages: 1-10

1. The UPAIA does not preclude a power of adjustment.

2. New York State and many other states currently have unitrust

provisions. The UPAIA does not preclude a state from adopt-

ing unitrust provisions. More than 20 states currently have

unitrust provisions.

3. The unitrust concept permits an income beneciary to receive

a xed percentage of the trust assets. Trust assets are revalued

annually.

4. The unitrust concept avoids the headache of a power of adjust-

ment in those few states that provide for a unitrust. In New York

State, the unitrust provision is found in EPTL 11–2.4, which

is not part of the UPAIA. Many states incorporate the unitrust

provision(s) within the UPAIA.

5. The New York State Uniform Principal and Income Act is effec-

tive January 1, 2002. It is found in EPTL 11-A-1.1 to 11-A-6.4

inclusive.

6. The New York State statutes provide for a power of adjustment

and an optional unitrust. The power of adjustment rules in New

York State are found in EPTL 11–2.3. It is part of the Prudent

Investor Act and not part of the UPAIA. In most states, the power

of adjustment is part of the UPAIA.

7. If the New York State unitrust provision is applicable, then the

Uniform Principal and Income Act and the power of adjustment

provisions will not apply.

8. The governing instrument can provide for rules different from

1

OVERVIEW OF THE UPAIA

AND RELATED NEW YORK

STATE TRUST PROVISIONS

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