More on a Trustee’s Power to Adjust under the Revised UPIA

Richard W. Nenno (Managing Director and Trust Counsel for Wilmington Trust Company, Wilmington, Delaware) has recently published his article entitled The Power to Adjust and Total-Return Unitrust Statutes: State Developments and Tax Considerations, 42 Real Prop. Prob. & Tr. J. 657 (2008) [ABA membership needed to access link].

Here is the editors’ synopsis of his article:

This Article discusses two concepts new to trust law: the power to adjust receipts and disbursements between principal and income under section 104 of the Uniform Principal and Income Act and the total-return unitrust statute. The Article examines traditional ways to address the problem trustees have in balancing the demand for increased distributions with their duties as prudent investors, describes recently developed statutory solutions and discusses relevant federal tax considerations.