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Uniform Laws Update

UFIPA: Trust Accounting for the 21st Century

Since 1931, the Uniform Principal and Income Act has provided default accounting rules for trustees. The act sets out rules for allocating receipts and disbursements to income or principal, which traditionally guided trustees and helped ensure the impartial treatment of beneficiaries entitled to receive income and beneficiaries entitled to receive principal. The ULC revised the act in 1962 and 1997 to address new types of investments. Currently, all but four states have adopted a statute based on the 1997 act. (See map on page 7.)

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