reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 28 - REVISED UNIFORM FIDUCIARY ACCESS TO DIGITAL ASSETS ACT (§§ 28-75-101 — 28-75-118) › Section 28-75-118 - Relation to Electronic Signatures and Global National Commerce Act

This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act,
15 U.S.C. § 7001
et seq., but does not modify, limit, or supersede Section 101(c) of that act,
15 U.S.C. § 7001(c)
, or authorize electronic delivery of any of the notices described in Section 103(b) of that act,
15 U.S.C. § 7003(b)
.
Added by Act 2017, No. 886,§ 1, eff. 8/1/2017.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-101 - Title

This chapter may be cited as the "Uniform Directed Trust Act".
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-102 - Definitions

As used in this chapter:
(1)
"Breach of trust" includes a violation by a trust director or trustee of a duty imposed on that director or trustee by the terms of the trust, this chapter, or law of this state other than this chapter pertaining to trusts.
(2)
"Directed trust" means a trust for which the terms of the trust grant a power of direction.
(3)
"Directed trustee" means a trustee that is subject to a trust director's power of direction.
(4)
"Person" means an individual, estate, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity.
(5)
"Power of direction" means a power over a trust granted to a person by the terms of the trust to the extent the power is exercisable while the person is not serving as a trustee. The term includes a power over the investment, management, or distribution of trust property or other matters of trust administration. The term excludes the powers described in §
28-76-105(b)
.
(6)
"Settlor" means a person, including a testator, that creates, or contributes property to, a trust. If more than one person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to that person's contribution except to the extent another person has the power to revoke or withdraw that portion.
(7)
"State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any other territory or possession subject to the jurisdiction of the United States.
(8)
"Terms of a trust" means:
(A)
except as otherwise provided in subparagraph (8)(B), the manifestation of the settlor's intent regarding a trust's provisions as:
(i)
expressed in the trust instrument; or
(ii)
established by other evidence that would be admissible in a judicial proceeding; or
(B)
the trust's provisions as established, determined, or amended by:
(i)
a trustee or trust director in accordance with applicable law;
(ii)
court order; or
(iii)
a nonjudicial settlement agreement under §
28-73-111
.
(9)
"Trust director" means a person that is granted a power of direction by the terms of a trust to the extent the power is exercisable while the person is not serving as a trustee. The person is a trust director whether or not the terms of the trust refer to the person as a trust director and whether or not the person is a beneficiary or settlor of the trust.
(10)
"Trustee" includes an original, additional, and successor trustee, and a cotrustee.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-103 - Application - Principal place of administration

(a)
This chapter applies to a trust, whenever created, that has its principal place of administration in this state, subject to the following rules:
(1)
If the trust was created before January 1, 2020, this chapter applies only to a decision or action occurring on or after January 1, 2020.
(2)
If the principal place of administration of the trust is changed to this state on or after January 1, 2020, this chapter applies only to a decision or action occurring on or after the date of the change.
(b)
Without precluding other means to establish a sufficient connection with the designated jurisdiction in a directed trust, terms of the trust which designate the principal place of administration of the trust are valid and controlling if:
(1)
a trustee's principal place of business is located in or a trustee is a resident of the designated jurisdiction; or
(2)
all or part of the administration occurs in the designated jurisdiction.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-104 - Common law and principles of equity

The common law and principles of equity supplement this chapter, except to the extent modified by this chapter or law of this state other than this chapter.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-105 - Exclusions

(a)
In this section, "power of appointment" means a power that enables a person acting in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of appointment over trust property.
(b)
This chapter does not apply to a:
(1)
power of appointment;
(2)
power to appoint or remove a trustee or trust director;
(3)
power of a settlor over a trust to the extent the settlor has a power to revoke the trust;
(4)
power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficial interest of:
(A)
the beneficiary; or
(B)
another beneficiary represented by the beneficiary under §
28-73-301
et seq. with respect to the exercise or nonexercise of the power; or
(5)
power over a trust if:
(A)
the terms of the trust provide that the power is held in a nonfiduciary capacity; and
(B)
the power must be held in a nonfiduciary capacity to achieve the settlor's tax objectives under the United States Internal Revenue Code of 1986, as amended.
(c)
Unless the terms of a trust provide otherwise, a power granted to a person to designate a recipient of an ownership interest in or power of appointment over trust property which is exercisable while the person is not serving as a trustee is a power of appointment and not a power of direction.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-106 - Powers of trust director

(a)
Subject to §
28-76-107
, the terms of a trust may grant a power of direction to a trust director.
(b)
Unless the terms of a trust provide otherwise:
(1)
a trust director may exercise any further power appropriate to the exercise or nonexercise of a power of direction granted to the director under subsection (a); and
(2)
trust directors with joint powers must act by majority decision.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-107 - Limitations on trust director

A trust director is subject to the same rules as a trustee in a like position and under similar circumstances in the exercise or nonexercise of a power of direction or further power under §
28-76-106(b)(1)
regarding:
(1)
a payback provision in the terms of a trust necessary to comply with the reimbursement requirements of Medicaid law in Section 1917 of the Social Security Act,
42 U.S.C. Section 1396p(d)(4)(A)
, as amended; and
(2)
a charitable interest in the trust, including notice regarding the interest to the Attorney General.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-108 - Duty and liability of trust director

(a)
Subject to subsection (b), with respect to a power of direction or further power under §
28-76-106(b)(1)
:
(1)
a trust director has the same fiduciary duty and liability in the exercise or nonexercise of the power:
(A)
if the power is held individually, as a sole trustee in a like position and under similar circumstances; or
(B)
if the power is held jointly with a trustee or another trust director, as a cotrustee in a like position and under similar circumstances; and
(2)
the terms of the trust may vary the director's duty or liability to the same extent the terms of the trust could vary the duty or liability of a trustee in a like position and under similar circumstances.
(b)
Unless the terms of a trust provide otherwise, if a trust director is licensed, certified, or otherwise authorized or permitted by law other than this chapter to provide health care in the ordinary course of the director's business or practice of a profession, to the extent the director acts in that capacity, the director has no duty or liability under this chapter.
(c)
The terms of a trust may impose a duty or liability on a trust director in addition to the duties and liabilities under this section.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-109 - Duty and liability of directed trustee

(a)
A directed trustee shall take reasonable action to comply with a trust director's direction given to the directed trustee by a trust director acting within the scope of the powers expressly granted to the trust director in the trust instrument, and except as otherwise provided in the trust instrument, the directed trustee is not liable for:
(1)
any loss that results directly or indirectly from any act taken or omitted as a result of the reasonable action of the directed trustee to comply with the direction of the trust director or the failure of the trust director to provide consent; and
(2)
whenever a directed trust reserves to a trust director the authority to direct the making or retention of any investment, to the exclusion of the directed trustee, the directed trustee shall not be liable for any loss resulting from the making or retention of any investment under such direction.
(b)
Absent contrary provisions in the governing instrument, the actions of a directed trustee taken under subsection (a) of this section to comply with a direction of a trust director are administrative actions taken by the directed trustee solely to allow the directed trustee to perform the duties assigned to the directed trustee under the governing instrument and the administrative actions shall not constitute an undertaking by the directed trustee to participate in or otherwise take any fiduciary responsibility for the direction of a trust director.
(c)
In an action against a directed trustee under this section, the burden to prove the matter by clear and convincing evidence is on the person seeking to hold the directed trustee liable.
(d)
A directed trustee that has reasonable doubt about its duty under this section may petition the court for instructions.
(e)
The terms of a trust may impose a duty or liability on a directed trustee in addition to the duties and liabilities under this section.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-110 - Duty to provide information to trust director or trustee

(a)
Subject to §
28-76-111
, a trustee shall provide information to a trust director to the extent the information is reasonably related both to:
(1)
the powers or duties of the trustee; and
(2)
the powers or duties of the director.
(b)
Subject to §
28-76-111
, a trust director shall provide information to a trustee or another trust director to the extent the information is reasonably related both to:
(1)
the powers or duties of the director; and
(2)
the powers or duties of the trustee or other director.
(c)
A trustee that acts in reliance on information provided by a trust director is not liable for a breach of trust to the extent the breach resulted from the reliance.
(d)
A trust director that acts in reliance on information provided by a trustee or another trust director is not liable for a breach of trust to the extent the breach resulted from the reliance.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-111 - No duty to monitor, inform, or advise

(a)
Unless the terms of a trust provide otherwise:
(1)
a trustee does not have a duty to:
(A)
monitor a trust director; or
(B)
inform or give advice to a settlor, beneficiary, trustee, or trust director concerning an instance in which the trustee might have acted differently than the director; and
(2)
by taking an action described in paragraph (1), a trustee does not assume the duty excluded by paragraph (1).
(b)
Unless the terms of a trust provide otherwise:
(1)
a trust director does not have a duty to:
(A)
monitor a trustee or another trust director; or
(B)
inform or give advice to a settlor, beneficiary, trustee, or another trust director concerning an instance in which the director might have acted differently than a trustee or another trust director; and
(2)
by taking an action described in paragraph (1), a trust director does not assume the duty excluded by paragraph (1).
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-112 - Application to trustee

The terms of a trust may relieve a cotrustee from duty and liability with respect to another cotrustee's exercise or nonexercise of a power of the other cotrustee to the same extent that in a directed trust a directed trustee is relieved from duty and liability with respect to a trust director's power of direction under §§
28-76-109
-
28-76-111
.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-113 - Limitation of action against trust director

(a)
An action against a trust director for breach of trust must be commenced within the same limitation period as under §
28-73-1005
for an action for breach of trust against a trustee in a like position and under similar circumstances.
(b)
A report or accounting has the same effect on the limitation period for an action against a trust director for breach of trust that the report or accounting would have under §
28-73-1005
in an action for breach of trust against a trustee in a like position and under similar circumstances.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-114 - Defenses in action against trust director

In an action against a trust director for breach of trust, the director may assert the same defenses a trustee in a like position and under similar circumstances could assert in an action for breach of trust against the trustee.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-115 - Jurisdiction over trust director

(a)
By accepting appointment as a trust director of a trust subject to this chapter, the director submits to personal jurisdiction of the courts of this state regarding any matter related to a power or duty of the director.
(b)
This section does not preclude other methods of obtaining jurisdiction over a trust director.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-116 - Office of trust director

Unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a trust director regarding the following matters:
(1)
acceptance under §
28-73-701
;
(2)
giving of bond to secure performance under §
28-73-702
;
(3)
reasonable compensation under §
28-73-708
;
(4)
resignation under §
28-73-705
;
(5)
removal under §
28-73-706
; and
(6)
vacancy and appointment of successor under §
28-73-704
.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-117 - Uniformity of application and construction

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.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 76 - UNIFORM DIRECTED TRUST ACT (§§ 28-76-101 — 28-76-118) › Section 28-76-118 - Relation to the Electronic Signatures and Global National Commerce Act

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 the notices described in Section 103(b) of that act,
15 U.S.C. Section 7003(b)
.
Added by Act 2019, No. 1021,§ 5, eff. 1/1/2020.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 1 - GENERAL PROVISIONS (§§ 28-77-101 — 28-77-104) › Section 28-77-101 - Short title

This chapter may be cited as the "Uniform Fiduciary Income and Principal Act".
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 1 - GENERAL PROVISIONS (§§ 28-77-101 — 28-77-104) › Section 28-77-103 - Scope

This chapter applies to a trust or estate.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 1 - GENERAL PROVISIONS (§§ 28-77-101 — 28-77-104) › Section 28-77-104 - Governing law

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 or estate. By accepting the trusteeship of a trust having its principal place of administration in this state or by moving the principal place of administration of a trust to this state, the trustee submits to the application of this chapter to any matter within the scope of this chapter involving the trust.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 2 - FIDUCIARY DUTIES AND JUDICIAL REVIEW (§§ 28-77-201 — 28-77-203) › Section 28-77-202 - Judicial review of exercise of discretionary power - Request for instruction

(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 discretionary power regarding income and principal granted by the terms of the trust or this chapter, including the power to adjust under §
28-77-203
, convert an income trust to a unitrust under §
28-77-303(a)(1)
, change the percentage or method used to calculate a unitrust amount under §
28-77-303(a)(2)
, or convert a unitrust to an income trust under §
28-77-303(a)(3)
; or
(3)
the fiduciary's implementation of a decision described in paragraph (1) or (2).
(b)
The court may not order a fiduciary to change a fiduciary decision unless the court determines that the fiduciary decision was an abuse of the fiduciary's discretion.
(c)
If the court determines that a fiduciary decision was an abuse of the fiduciary's discretion, the court may order a remedy authorized by law, including §
28-73-1001
. To place the beneficiaries in the positions the beneficiaries would have occupied if there had not been an abuse of the fiduciary's discretion, the court may order:
(1)
the fiduciary to exercise or refrain from exercising the power to adjust under §
28-77-203
;
(2)
the fiduciary to exercise or refrain from exercising the power to convert an income trust to a unitrust under §
28-77-303(a)(1)
, change the percentage or method used to calculate a unitrust amount under §
28-77-303(a)(2)
, or convert a unitrust to an income trust under §
28-77-303(a)(3)
;
(3)
the fiduciary to distribute an amount to a beneficiary;
(4)
a beneficiary to return some or all of a distribution; or
(5)
the fiduciary to withhold an amount from one or more future distributions to a beneficiary.
(d)
On petition by a fiduciary for instruction, the court may determine whether a proposed fiduciary decision will result in an abuse of the fiduciary's discretion. If the petition describes the proposed decision, contains sufficient information to inform the beneficiary of the reasons for making the proposed decision and the facts on which the fiduciary relies, and explains how the beneficiary will be affected by the proposed decision, a beneficiary that opposes the proposed decision has the burden to establish that it will result in an abuse of the fiduciary's discretion.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 3 - UNITRUST (§§ 28-77-301 — 28-77-309) › Section 28-77-301 - Definitions

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 may be calculated as a unitrust amount.
(3)
"Income trust" means a trust that is not a unitrust.
(4)
"Net fair market value of a trust" means the fair market value of the assets of the trust, less the noncontingent liabilities of the trust.
(5)
"Unitrust" means a trust for which net income is a unitrust amount. The term includes an express unitrust.
(6)
"Unitrust amount" means an amount computed by multiplying a determined value of a trust by a determined percentage. For a unitrust administered under a unitrust policy, the term means the applicable value, multiplied by the unitrust rate.
(7)
"Unitrust policy" means a policy described in §§
28-77-305
through
28-77-309
and adopted under §
28-77-303
.
(8)
"Unitrust rate" means the rate used to compute the unitrust amount under paragraph (6) for a unitrust administered under a unitrust policy.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 3 - UNITRUST (§§ 28-77-301 — 28-77-309) › Section 28-77-302 - Application - Duties and remedies

(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 calculated as a unitrust amount; and
(2)
an express unitrust, except to the extent the terms of the trust explicitly:
(A)
prohibit use of this subchapter by a specific reference to this subchapter;
(B)
prohibit conversion to an income trust; or
(C)
limit changes to the method of calculating the unitrust amount.
(b)
This subchapter does not apply to a trust described in Section 170(f)(2)(B), 642(c)(5), 664(d), 2702(a)(3)(A)(ii) or (iii), or 2702(b) of the Internal Revenue Code of 1986, as amended,
26 U.S.C. Section 170(f)(2)(B)
,
642(c)(5)
,
664(d)
,
2702(a)(3)(A)(ii) or (iii)
, or
2702(b)
, as amended.
(c)
An income trust to which this subchapter applies under subsection (a)(1) may be converted to a unitrust under this subchapter regardless of the terms of the trust concerning distributions. Conversion to a unitrust under this subchapter does not affect other terms of the trust concerning distributions of income or principal.
(d)
This subchapter applies to an estate only to the extent a trust is a beneficiary of the estate. To the extent of the trust's interest in the estate, the estate may be administered as a unitrust, the administration of the estate as a unitrust may be discontinued, or the percentage or method used to calculate the unitrust amount may be changed, in the same manner as for a trust under this subchapter.
(e)
This subchapter does not create a duty to take or consider action under this subchapter or to inform a beneficiary about the applicability of this subchapter.
(f)
A fiduciary that in good faith takes or fails to take an action under this subchapter is not liable to a person affected by the action or inaction.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 3 - UNITRUST (§§ 28-77-301 — 28-77-309) › Section 28-77-304 - Notice

(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 Trust Act, §
28-76-101
et seq.
(b)
The representation provisions of §§
28-73-301
-
28-73-305
apply to notice under this section.
(c)
A person may consent in a record at any time to action proposed under §
28-77-303(b)(2)
. A notice required by §
28-77-303(b)(2)
need not be sent to a person that consents under this subsection.
(d)
A notice required by §
28-77-303(b)(2)
must include:
(1)
the action proposed under §
28-77-303(b)(2)
;
(2)
for a conversion of an income trust to a unitrust, a copy of the unitrust policy adopted under §
28-77-303(a)(1)
;
(3)
for a change in the percentage or method used to calculate the unitrust amount, a copy of the unitrust policy or amendment or replacement of the unitrust policy adopted under §
28-77-303(a)(2)
;
(4)
a statement that the person to which the notice is sent may object to the proposed action by stating in a record the basis for the objection and sending or delivering the record to the fiduciary;
(5)
the date by which an objection under paragraph (4) must be received by the fiduciary, which must be at least 30 days after the date the notice is sent;
(6)
the date on which the action is proposed to be taken and the date on which the action is proposed to take effect;
(7)
the name and contact information of the fiduciary; and
(8)
the name and contact information of a person that may be contacted for additional information.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 3 - UNITRUST (§§ 28-77-301 — 28-77-309) › Section 28-77-305 - Unitrust policy

(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 determining the unitrust rate under §
28-77-306
;
(2)
the method for determining the applicable value under §
28-77-307
; and
(3)
the rules described in §§
28-77-306
through
28-77-309
which apply in the administration of the unitrust, whether the rules are:
(A)
mandatory, as provided in §
28-77-307(a)
and §
28-77-308(a)
; or
(B)
optional, as provided in §
28-77-306
, §
28-77-307(b)
, §
28-77-308(b)
, and §
28-77-309(a)
, to the extent the fiduciary elects to adopt those rules.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 3 - UNITRUST (§§ 28-77-301 — 28-77-309) › Section 28-77-306 - Unitrust rate

(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 over a stated number of preceding periods.
(b)
Except as otherwise provided in §
28-77-309(b)(1)
, a unitrust policy may provide:
(1)
a limit on how high the unitrust rate determined under subsection (a)(2) may rise;
(2)
a limit on how low the unitrust rate determined under subsection (a)(2) may fall;
(3)
a limit on how much the unitrust rate determined under subsection (a)(2) may increase over the unitrust rate for the preceding period or a mathematical blend of unitrust rates over a stated number of preceding periods;
(4)
a limit on how much the unitrust rate determined under subsection (a)(2) may decrease below the unitrust rate for the preceding period or a mathematical blend of unitrust rates over a stated number of preceding periods; or
(5)
a mathematical blend of any of the unitrust rates determined under subsection (a)(2) and paragraphs (1) through (4).
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 3 - UNITRUST (§§ 28-77-301 — 28-77-309) › Section 28-77-307 - Applicable value

(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 the asset in each period in which the asset is valued.
(b)
Except as otherwise provided in §
28-77-309(b)(2)
, a unitrust policy may provide methods for determining the amount of the net fair market value of the trust to take into account in determining the applicable value, including:
(1)
obtaining an appraisal of an asset for which fair market value is not readily available;
(2)
exclusion of specific assets or groups or types of assets;
(3)
other exceptions or modifications of the treatment of specific assets or groups or types of assets;
(4)
identification and treatment of cash or property held for distribution;
(5)
use of:
(A)
an average of fair market values over a stated number of preceding periods; or
(B)
another mathematical blend of fair market values over a stated number of preceding periods;
(6)
a limit on how much the applicable value of all assets, groups of assets, or individual assets may increase over:
(A)
the corresponding applicable value for the preceding period; or
(B)
a mathematical blend of applicable values over a stated number of preceding periods;
(7)
a limit on how much the applicable value of all assets, groups of assets, or individual assets may decrease below:
(A)
the corresponding applicable value for the preceding period; or
(B)
a mathematical blend of applicable values over a stated number of preceding periods;
(8)
the treatment of accrued income and other features of an asset which affect value; and
(9)
determining the liabilities of the trust, including treatment of liabilities to conform with the treatment of assets under paragraphs (1) through (8).
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 3 - UNITRUST (§§ 28-77-301 — 28-77-309) › Section 28-77-308 - Period

(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 than a calendar quarter; or
(5)
another period.
(b)
Except as otherwise provided in §
28-77-309(b)
, a unitrust policy may provide standards for:
(1)
using fewer preceding periods under §
28-77-306(a)(2)(B)
or §
28-77-306(b)(3)
or §
28-77-306(b)(4)
if:
(A)
the trust was not in existence in a preceding period; or
(B)
market indices or other published data are not available for a preceding period;
(2)
using fewer preceding periods under §
28-77-307(b)(5)(A)
or §
28-77-307(b)(5)(B)
, §
28-77-307(b)(6)(B)
, or §
28-77-307(b)(7)(B)
if:
(A)
the trust was not in existence in a preceding period; or
(B)
fair market values are not available for a preceding period; and
(3)
prorating the unitrust amount on a daily basis for a part of a period in which the trust or the administration of the trust as a unitrust or the interest of any beneficiary commences or terminates.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 3 - UNITRUST (§§ 28-77-301 — 28-77-309) › Section 28-77-309 - Special tax benefits - Other rules

(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 amount if there is an error in calculating the unitrust amount;
(2)
specify sources and the order of sources, including categories of income for federal income tax purposes, from which distributions of a unitrust amount are paid; or
(3)
provide other standards and rules the fiduciary determines serve the interests of the beneficiaries.
(b)
If a trust qualifies for a special tax benefit or a fiduciary is not an independent person:
(1)
the unitrust rate established under §
28-77-306
may not be less than three percent or more than five percent;
(2)
the only provisions of §
28-77-307
which apply are §
28-77-307(a)
and §
28-77-307(b)(1)
, §
28-77-307(b)(4)
, §
28-77-307(b)(5)(A)
, and §
28-77-307(b)(9)
;
(3)
the only period that may be used under §
28-77-308
is a calendar year under §
28-77-308(a)(1)
; and
(4)
the only other provisions of §
28-77-308
which apply are §
28-77-308(b)(2)(A)
and §
28-77-308(b)(3)
.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 4 - ALLOCATION OF RECEIPTS (§§ 28-77-401 — 28-77-416) › Part 1 - RECEIPTS FROM ENTITY (§§ 28-77-401 — 28-77-403) › Section 28-77-402 - Distribution from trust or estate

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 investment entity, and shall allocate to principal an amount received as a distribution of principal from the trust or estate. If a fiduciary purchases, or receives from a settlor, an interest in a trust that is an investment entity, §
28-77-401
, §
28-77-415
, or §
28-77-416
applies to a receipt from the trust.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 4 - ALLOCATION OF RECEIPTS (§§ 28-77-401 — 28-77-416) › Part 1 - RECEIPTS FROM ENTITY (§§ 28-77-401 — 28-77-403) › Section 28-77-403 - Business or other activity conducted by fiduciary

(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 part of the fiduciary's general accounting records; or
(2)
conducting the business or other activity through an entity described in §
28-77-401(a)(2)(A)
.
(b)
A fiduciary may account separately under this section for the transactions of a business or other activity, whether or not assets of the business or other activity are segregated from other assets held by the fiduciary.
(c)
A fiduciary that accounts separately under this section for a business or other activity:
(1)
may determine:
(A)
the extent to which the net cash receipts of the business or other activity must be retained for:
(i)
working capital;
(ii)
the acquisition or replacement of fixed assets; and
(iii)
other reasonably foreseeable needs of the business or other activity; and
(B)
the extent to which the remaining net cash receipts are accounted for as principal or income in the fiduciary's general accounting records for the trust;
(2)
may make a determination under paragraph (1) separately and differently from the fiduciary's decisions concerning distributions of income or principal; and
(3)
shall account for the net amount received from the sale of an asset of the business or other activity, other than a sale in the ordinary course of the business or other activity, as principal in the fiduciary's general accounting records for the trust, to the extent the fiduciary determines that the net amount received is no longer required in the conduct of the business or other activity.
(d)
Activities for which a fiduciary may account separately under this section include:
(1)
retail, manufacturing, service, and other traditional business activities;
(2)
farming;
(3)
raising and selling livestock and other animals;
(4)
managing rental properties;
(5)
extracting minerals, water, and other natural resources;
(6)
growing and cutting timber;
(7)
an activity to which §
28-77-414
, §
28-77-415
, or §
28-77-416
applies; and
(8)
any other business conducted by the fiduciary.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 4 - ALLOCATION OF RECEIPTS (§§ 28-77-401 — 28-77-416) › Part 2 - RECEIPTS NOT NORMALLY APPORTIONED (§§ 28-77-404 — 28-77-407) › Section 28-77-404 - Principal receipts

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 naming the fiduciary as beneficiary;
(2)
except as otherwise provided in this subchapter, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset;
(3)
an amount recovered from a third party to reimburse the fiduciary because of a disbursement described in §
28-77-502(a)
or for another reason to the extent not based on loss of income;
(4)
proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period;
(5)
net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and
(6)
other receipts as provided in Part 3.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 4 - ALLOCATION OF RECEIPTS (§§ 28-77-401 — 28-77-416) › Part 2 - RECEIPTS NOT NORMALLY APPORTIONED (§§ 28-77-404 — 28-77-407) › Section 28-77-405 - Rental property

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 lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods:
(1)
must be added to principal and held subject to the terms of the lease, except as otherwise provided by law other than this chapter; and
(2)
is not allocated to income or available for distribution to a beneficiary until the fiduciary's contractual obligations have been satisfied with respect to that amount.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 4 - ALLOCATION OF RECEIPTS (§§ 28-77-401 — 28-77-416) › Part 2 - RECEIPTS NOT NORMALLY APPORTIONED (§§ 28-77-404 — 28-77-407) › Section 28-77-406 - Receipt on obligation to be paid in money

(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 on an obligation to pay money to the fiduciary, including an amount received as consideration for prepaying principal.
(c)
A fiduciary shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the fiduciary. A fiduciary shall allocate to income the increment in value of a bond or other obligation for the payment of money bearing no stated interest but payable or redeemable, at maturity or another future time, in an amount that exceeds the amount in consideration of which it was issued.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Code of 1987 (2023) › Title 28 - WILLS, ESTATES, AND FIDUCIARY RELATIONSHIPS (§§ 28-1-101 — 28) › Subtitle 5 - FIDUCIARY RELATIONSHIPS (§§ 28-65-101 — 28-77-803) › Chapter 77 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 28-77-101 — 28-77-803) › Subchapter 4 - ALLOCATION OF RECEIPTS (§§ 28-77-401 — 28-77-416) › Part 2 - RECEIPTS NOT NORMALLY APPORTIONED (§§ 28-77-404 — 28-77-407) › Section 28-77-407 - Insurance policy or contract

(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 contract that insures against damage to, destruction of, or loss of title to an asset. The fiduciary shall allocate dividends on an insurance policy to income to the extent premiums on the policy are paid from income and to principal to the extent premiums on the policy are paid from principal.
(c)
A fiduciary shall allocate to income proceeds of a contract that insures the fiduciary against loss of:
(1)
occupancy or other use by a current income beneficiary;
(2)
income; or
(3)
subject to §
28-77-403
, profits from a business.
Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.