(a) In allocating receipts and disbursements to or between principal and income, and
in any matter within the scope of articles 2 and 3, a fiduciary:
(1) Shall administer a trust or estate in accordance with the terms of the trust or
the will, even if there is a different provision in this chapter;
(2) May administer a trust or estate by the exercise of a discretionary power of administration
given to the fiduciary by the terms of the trust or the will, even if the exercise
of the power produces a result different from a result required or permitted by this
chapter, and no inference that the fiduciary has improperly exercised the discretion
arises from the fact that the fiduciary has made an alteration contrary to the provisions
of this chapter;
(3) Shall administer a trust or estate in accordance with this chapter if the terms
of the trust or the will do not contain a different provision or do not give the fiduciary
a discretionary power of administration; and
(4) Shall add a receipt or charge a disbursement to principal to the extent that the
terms of the trust and this chapter do not provide a rule for allocating the receipt
or disbursement to or between principal and income.
(b) In exercising the power to adjust granted by section 557A-104(a) or a discretionary power of administration regarding a matter within the scope of
this chapter, whether granted by the terms of a trust, a will, or this chapter, a
fiduciary shall administer a trust or estate impartially, based on what is fair and
reasonable to all of the beneficiaries, except to the extent that the terms of the
trust or the will clearly manifest an intention that the fiduciary shall or may favor
one or more of the beneficiaries. The exercise of discretion in accordance with this chapter is presumed to be fair
and reasonable to all of the beneficiaries.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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