§557A-104 Trustee's power to adjust. (a) Subject to subsection (b), a trustee may adjust between principal and income to the extent the trustee considers necessary if all of the following conditions are satisfied:
(b) In deciding whether and to what extent to exercise the power conferred by subsection (a), a trustee shall consider all of the factors relevant to the trust and its beneficiaries, including the following factors to the extent they are relevant:
(c) A trustee may not make an adjustment:
(d) If subsection (c)(5), (6), or (7) applies to a trustee and there is more than one trustee, a co-trustee to whom the provision does not apply may make the adjustment, unless the exercise of the power by the remaining trustee or trustees is clearly not permitted by the terms of the trust.
(e) A trustee may release the entire power conferred by subsection (a) or may release only the power to adjust from income to principal or the power to adjust from principal to income if the trustee is uncertain about whether possessing or exercising the power will cause a result described in subsection (c)(1) through (6) or if the trustee determines that possessing or exercising the power will or may deprive the trust of a tax benefit or impose a tax burden not described in subsection (c). The release may be permanent or for a specified period, including a period measured by the life of an individual.
(f) Terms of a trust that limit the power of a trustee to make an adjustment between principal and income are not contrary to this section, unless it is clear from the terms of the trust that the terms are intended to deny the trustee the power of adjustment conferred by subsection (a).
(g) Nothing in this section or in this chapter is intended to create or imply a duty to make an adjustment, and the trustee is not liable for not considering whether to make an adjustment or for choosing not to make an adjustment. [L 2000, c 191, pt of §1; am L 2018, c 18, §43]