CHAPTER 3. Uniform Fiduciary Income and Principal Act [16320. - 16383.]

Chapter 3 repealed and added by Stats. 2023, Ch. 28, Sec. 2.

§§ 16320–16383 · 49 sections

1. ARTICLE 1. General Provisions and Definitions §§ 16320–16323 · 4 sections

   • § 16320 This section shall be known, and may be cited, as the Uniform Fiduciary Income and Principal Act.
   • § 16321 The following definitions apply for purposes of this chapter: (a) “Accounting period” means a calendar year, unless a fiduciary selects another period of 12…
   • § 16322 Except as otherwise provided in the terms of a trust or this chapter, this chapter applies to the following: (a) A trust or an estate. (b) A life estate or…
   • § 16323 Except as otherwise provided in the terms of a trust or this chapter, this chapter applies when this state is the principal place of administration of a trust…
2. ARTICLE 2. Fiduciary Duties and Judicial Review §§ 16325–16327 · 3 sections

   • § 16325 (a) In making an allocation or determination or exercising discretion under this chapter, all of the following apply: (1) A fiduciary shall act in good faith,…
   • § 16326 (a) For purposes of this section, “fiduciary decision” means any of the following: (1) A fiduciary’s allocation between income and principal or another…
   • § 16327 (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…
3. ARTICLE 3. Unitrust §§ 16330–16338 · 9 sections

   • § 16330 The following definitions apply for purposes of this article: (a) “Applicable value” means the amount of the net fair market value of a trust taken into…
   • § 16331 (a) Except as otherwise provided in subdivision (b), this article applies to both of the following: (1) An income trust, unless the terms of the trust…
   • § 16332 (a) A fiduciary, without court approval, by complying with subdivisions (b) and (f), may do any of the following: (1) Convert an income trust to a unitrust if…
   • § 16333 A notice required by paragraph (2) of subdivision (b) of Section 16332 shall be sent as required by Chapter 5 (commencing with Section 16500), including notice…
   • § 16334 (a) In administering a unitrust under this article, a fiduciary shall follow a unitrust plan adopted under paragraph (1) or (2) of subdivision (a) of Section…
   • § 16335 (a) A unitrust rate may not be less than 3 percent, or greater than 5 percent, unless the unitrust plan has been approved by court order. If the unitrust plan…
   • § 16336 (a) A unitrust plan shall provide the method for determining the fair market value of an asset for the purpose of determining the unitrust amount, including…
   • § 16337 (a) A unitrust plan shall provide the period used under Sections 16335 and 16336. Except as otherwise provided in paragraph (3) of subdivision (b) of Section…
   • § 16338 (a) A unitrust plan may include any of the following: (1) Provide methods and standards for all of the following: (A) Determining the timing of distributions.…
4. ARTICLE 4. Allocation of Receipts §§ 16340–16355 · 16 sections

   • § 16340 (a) The following definitions apply for purposes of this section: (1) “Capital distribution” means an entity distribution of money that is either of the…
   • § 16341 A fiduciary shall allocate to income an amount received as a distribution of income, including a unitrust distribution under Article 3 (commencing with Section…
   • § 16342 (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…
   • § 16343 A fiduciary shall allocate to principal any of the following: (a) To the extent not allocated to income under this chapter, an asset received from any of the…
   • § 16344 To the extent a fiduciary does not account for the management of rental property as a business under Section 16342, the fiduciary shall allocate to income an…
   • § 16345 (a) This section does not apply to an obligation to which Section 16348, 16349, 16350, 16351, 16353, 16354, or 16355 applies. (b) A fiduciary shall allocate to…
   • § 16346 (a) This section does not apply to a contract to which Section 16348 applies. (b) Except as otherwise provided in subdivision (c), a fiduciary shall allocate…
   • § 16347 (a) If a fiduciary determines that an allocation between income and principal required by Section 16348, 16349, 16350, 16351, or 16354 is insubstantial, the…
   • § 16348 (a) The following definitions apply for purposes of this section: (1) “Internal income of a separate fund” means the amount determined under subdivision (b).…
   • § 16349 (a) For purposes of this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts…
   • § 16350 (a) To the extent a fiduciary does not account for a receipt from an interest in minerals, water, or other natural resources as a business under Section 16432,…
   • § 16351 (a) To the extent a fiduciary does not account for receipts from the sale of timber and related products as a business under Section 16342, the fiduciary shall…
   • § 16352 (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…
   • § 16353 (a) For purposes of this section, “derivative” means a contract, instrument, other arrangement, or combination of contracts, instruments, or other…
   • § 16354 (a) Except as otherwise provided in subdivision (b), a fiduciary shall allocate to income a receipt from or related to an asset-backed security, to the extent…
   • § 16355 A fiduciary shall allocate receipts from, or related to, a financial instrument or arrangement not otherwise addressed by this chapter. The allocation shall be…
5. ARTICLE 5. Allocation of Disbursements §§ 16360–16367 · 8 sections

   • § 16360 Subject to Section 16363, and except as otherwise provided in paragraph (2) or (3) of subdivision (c) of Section 16370, a fiduciary shall disburse from income…
   • § 16361 (a) Subject to Section 16364, and except as otherwise provided in paragraph (2) of subdivision (c) of Section 16370, a fiduciary shall disburse from principal…
   • § 16362 (a) For purposes of this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a tangible asset…
   • § 16363 (a) If a fiduciary makes or expects to make an income disbursement described in subdivision (b), the fiduciary may transfer an appropriate amount from…
   • § 16364 (a) If a fiduciary makes or expects to make a principal disbursement described in subdivision (b), the fiduciary may transfer an appropriate amount from income…
   • § 16365 (a) A tax required to be paid by a fiduciary that is based on receipts allocated to income shall be paid from income. (b) A tax required to be paid by a…
   • § 16366 (a) A fiduciary may make an adjustment between income and principal to offset the shifting of economic interests or tax benefits between current income…
   • § 16367 Unless otherwise provided by the governing instrument, determined by the trustee, or ordered by the court, distributions to beneficiaries shall be considered…
6. ARTICLE 6. Death of Individual or Termination of Income Interest §§ 16370–16371 · 2 sections

   • § 16370 (a) This section applies when either of the following occurs: (1) The death of an individual results in the creation of an estate or trust. (2) An income…
   • § 16371 (a) Except to the extent that Article 3 (commencing with Section 16330) applies for a beneficiary that is a trust, each beneficiary described in subdivision…
7. ARTICLE 7. Apportionment at Beginning and End of Income Interest §§ 16375–16377 · 3 sections

   • § 16375 (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…
   • § 16376 (a) A fiduciary shall allocate an income receipt or disbursement, other than a receipt to which subdivision (b) of Section 16370 applies, to principal if its…
   • § 16377 (a) For purposes of this section, “undistributed income” means net income received on or before the date on which an income interest ends. “Undistributed…
8. ARTICLE 8. Miscellaneous Provisions §§ 16380–16383 · 4 sections

   • § 16380 In applying and construing this uniform act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among…
   • § 16381 This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act (15 U.S.C. Sec. 7001 et seq.), but does not modify,…
   • § 16382 This chapter applies to a trust or estate existing or created on or after the effective date of this chapter, except as otherwise expressly provided in the…
   • § 16383 If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or…