Title 28, — Appendix Administrative Order Number 12 — Official Probate Forms

(a) In this section, “fiduciary decision” means:(1) a fiduciary's allocation between income and principal or other determination regarding income and principal required or authorized by the terms of the trust or this chapter;(2) the fiduciary's exercise or nonexercise of a discre…

(a) Except as otherwise provided in the terms of a trust or this section, a fiduciary, in a record, without court approval, may adjust between income and principal if the fiduciary determines the exercise of the power to adjust will assist the fiduciary to administer the trust or…

(1) In this subchapter:(1) “Applicable value” means the amount of the net fair market value of a trust taken into account under § 28-77-307.(2) “Express unitrust” means a trust for which, under the terms of the trust without regard to this subchapter, income or net income must or…

(a) Except as otherwise provided in subsection (b), this subchapter applies to:(1) an income trust, unless the terms of the trust expressly prohibit use of this subchapter by a specific reference to this subchapter or an explicit expression of intent that net income not be calcul…

(a) A fiduciary, without court approval, by complying with subsections (b) and (f), may:(1) convert an income trust to a unitrust if the fiduciary adopts in a record a unitrust policy for the trust providing:(A) that in administering the trust the net income of the trust will be …

(a) A notice required by § 28-77-303(b)(2) must be sent in a manner authorized under § 28-73-109 to:(1) the qualified beneficiaries determined under § 28-73-103, other than the Attorney General; and(2) each person acting as trust director of the trust under the Uniform Directed T…

(a) In administering a unitrust under this subchapter, a fiduciary shall follow a unitrust policy adopted under § 28-77-303(a)(1) or § 28-77-303(a)(2) or amended or replaced under § 28-77-303(a)(2). (b) A unitrust policy must provide:(1) the unitrust rate or the method for determ…

(a) Except as otherwise provided in § 28-77-309(b)(1), a unitrust rate may be:(1) a fixed unitrust rate; or(2) a unitrust rate that is determined for each period using:(A) a market index or other published data; or(B) a mathematical blend of market indices or other published data…

(a) A unitrust policy must provide the method for determining the fair market value of an asset for the purpose of determining the unitrust amount, including:(1) the frequency of valuing the asset, which need not require a valuation in every period; and(2) the date for valuing th…

(a) A unitrust policy must provide the period used under §§ 28-77-306 and 28-77-307. Except as otherwise provided in § 28-77-309(b)(3), the period may be:(1) a calendar year;(2) a 12-month period other than a calendar year;(3) a calendar quarter;(4) a three-month period other tha…

(a) A unitrust policy may:(1) provide methods and standards for:(A) determining the timing of distributions;(B) making distributions in cash or in kind or partly in cash and partly in kind; or(C) correcting an underpayment or overpayment to a beneficiary based on the unitrust amo…

(a) In this section:(1) “Capital distribution” means an entity distribution of money which is a:(A) return of capital; or(B) distribution in total or partial liquidation of the entity.(2) “Entity”:(A) means a corporation, partnership, limited liability company, regulated investme…

A fiduciary shall allocate to income an amount received as a distribution of income, including a unitrust distribution under § 28-77-301 et seq., from a trust or estate in which the fiduciary has an interest, other than an interest the fiduciary purchased in a trust that is an in…

(a) This section applies to a business or other activity conducted by a fiduciary if the fiduciary determines that it is in the interests of the beneficiaries to account separately for the business or other activity instead of:(1) accounting for the business or other activity as …

(1) A fiduciary shall allocate to principal:(1) to the extent not allocated to income under this chapter, an asset received from:(A) an individual during the individual's lifetime;(B) an estate;(C) a trust on termination of an income interest; or(D) a payor under a contract namin…

(1) To the extent a fiduciary does not account for the management of rental property as a business under § 28-77-403, the fiduciary shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a leas…

(a) This section does not apply to an obligation to which § 28-77-409, § 28-77-410, § 28-77-411, § 28-77-412, § 28-77-414, § 28-77-415, or § 28-77-416 applies. (b) A fiduciary shall allocate to income, without provision for amortization of premium, an amount received as interest …

(a) This section does not apply to a contract to which § 28-77-409 applies. (b) Except as otherwise provided in subsection (c), a fiduciary shall allocate to principal the proceeds of a life insurance policy or other contract received by the fiduciary as beneficiary, including a …

(a) If a fiduciary determines that an allocation between income and principal required by § 28-77-409, § 28-77-410, § 28-77-411, § 28-77-412, or § 28-77-415 is insubstantial, the fiduciary may allocate the entire amount to principal, unless § 28-77-203(e) applies to the allocatio…

(a) In this section:(1) “Internal income of a separate fund” means the amount determined under subsection (b).(2) “Marital trust” means a trust:(A) of which the settlor's surviving spouse is the only current income beneficiary and is entitled to a distribution of all the current …

(a) In this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a limited time. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of m…

(a) To the extent that a fiduciary accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the fiduciary shall allocate them as follows:(1) if received as nominal delay rental or nominal annual rent on a lease, a receipt must be all…

(a) To the extent a fiduciary does not account for receipts from the sale of timber and related products as a business under § 28-77-403, the fiduciary shall allocate the net receipts:(1) to income, to the extent the amount of timber cut from the land does not exceed the rate of …

(a) If a trust received property for which a gift or estate tax marital deduction was allowed and the settlor's spouse holds a mandatory income interest in the trust, the spouse may require the trustee, to the extent the trust assets otherwise do not provide the spouse with suffi…

(a) In this section, “derivative” means a contract, instrument, other arrangement, or combination of contracts, instruments, or other arrangements, the value, rights, and obligations of which are, in whole or in part, dependent on or derived from an underlying tangible or intangi…

(a) Except as otherwise provided in subsection (b), a fiduciary shall allocate to income a receipt from or related to an asset-backed security, to the extent the payor identifies the payment as being from interest or other current return, and to principal the balance of the recei…

A fiduciary shall allocate receipts from or related to a financial instrument or arrangement not otherwise addressed by this chapter. The allocation must be consistent with §§ 28-77-414 and 28-77-415.

(1) Subject to § 28-77-504, and except as otherwise provided in § 28-77-601(c)(2) or § 28-77-601(c)(3), a fiduciary shall disburse from income:(1) one-half of:(A) the regular compensation of the fiduciary and any person providing investment advisory, custodial, or other services …

(a) Subject to § 28-77-505, and except as otherwise provided in § 28-77-601(c)(2), a fiduciary shall disburse from principal:(1) the balance of the disbursements described in § 28-77-501(1) and § 28-77-501(3), after application of § 28-77-501(2);(2) the fiduciary's compensation c…

(a) In this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a tangible asset having a useful life of more than one year. (b) A fiduciary may transfer to principal a reasonable amount of the net cash receipts from …

(a) If a fiduciary makes or expects to make an income disbursement described in subsection (b), the fiduciary may transfer an appropriate amount from principal to income in one or more accounting periods to reimburse income. (b) To the extent the fiduciary has not been and does n…

(a) If a fiduciary makes or expects to make a principal disbursement described in subsection (b), the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or provide a reserve for future principal disbursem…

(a) A tax required to be paid by a fiduciary which is based on receipts allocated to income must be paid from income. (b) A tax required to be paid by a fiduciary which is based on receipts allocated to principal must be paid from principal, even if the tax is called an income ta…

(a) A fiduciary may make an adjustment between income and principal to offset the shifting of economic interests or tax benefits between current income beneficiaries and successor beneficiaries which arises from:(1) an election or decision the fiduciary makes regarding a tax matt…

(a) This section applies when:(1) the death of an individual results in the creation of an estate or trust; or(2) an income interest in a trust terminates, whether the trust continues or is distributed. (1) the death of an individual results in the creation of an estate or trust;…

(a) Except to the extent § 28-77-301 et seq. applies for a beneficiary that is a trust, each beneficiary described in § 28-77-601(d) is entitled to receive a share of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as …

(a) An income beneficiary is entitled to net income in accordance with the terms of the trust from the date an income interest begins. The income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to:(…

(a) A fiduciary shall allocate an income receipt or disbursement, other than a receipt to which § 28-77-601(b) applies, to principal if its due date occurs before the date on which:(1) for an estate, the decedent died; or(2) for a trust or successive interest, an income interest …

(a) In this section, “undistributed income” means net income received on or before the date on which an income interest ends. The term does not include an item of income or expense which is due or accrued or net income that has been added or is required to be added to principal u…

In applying and construing 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 it.

This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of t…

This chapter applies to a trust or estate existing or created on or after January 1, 2022, except as otherwise expressly provided in the terms of the trust or this chapter.