Trusts and Estates
Ca. Trs. & Estates Quarterly Volume 9, Issue 4, Winter 2003
Content
- Death of a Litigant: What Is a Trusts and Estates Litigator To Do?
- Hipaa Privacy Rules: What's An Estate Planner To Do?
- Looking At Medical Privacy Rules From An Estate Planner's Perspective
- The Dead Hand Writes - and, Having Writ, Moves On: the Increasing Prevalence of No Contest Litigation In California
- ADJUSTMENT POWERS, UNITRUSTS AND ANNUITY TRUSTS - THE NEW "INCOME DEFINITION" REGULATIONS
ADJUSTMENT POWERS, UNITRUSTS AND ANNUITY TRUSTS – THE NEW "INCOME DEFINITION" REGULATIONS
By Russell G. Allen, Esq.*
I. INTRODUCTION
As a result of California’s adoption of the Uniform Principal and Income Act,1 we have a somewhat different notion of what constitutes "income" for fiduciary accounting purposes than we traditionally did.
Although the details vary, most other states also have revised their laws within the last few years, too.2 A number of states have adopted an alternative definition of "income" that refers to a unitrust amount. Conceptually, they can be divided into two categories – those like Delaware, which permits a 3% to 5% benchmark, and those like New York, which permits only a 4% unitrust amount.3