Liquidating trust and
There are three existing versions of the UPIA: the original 1931 statute and its progeny, the 1962 revised statute and the most recent 1997 revised act.
This statement is overly broad and, as such, it can be misleading: UPIA is for the most part confined to a particular aspect of trust and estate accounting.Accordingly, the (UPIA) rules governing how a receipt or disbursement is to be categorized (principal versus income) will determine which equity interest holder is to receive the benefit of any receipt or whose interest will be reduced by a disbursement.This naturally creates a conflict: If a receipt is determined to be income, the income beneficiary (a.k.a., equity interest holder) will benefit to the detriment of the principal beneficiary, and vice versa.A number of UPIA topics, each worthy of an article, come to mind.The problem is that any one aspect of UPIA will, by definition, have limited utility.RUPIA 1997 maintained many of the basic rules and principles of RUPIA 1962, though some significant changes were incorporated in the newer uniform law.
Understanding how these changes may affect trust and estate client's situations will be valuable to advisors.
Correspondingly, UPIA 1931 will be used to refer specifically to the original law, and RUPIA to refer to both the 19 revised statutes.
And, of course, RUPIA 1962 or RUPIA 1997 is meant to refer to these individual laws.
For this reason, this article is devoted to UPIA's concepts and underlying principles.
In many states, a revised version of UPIA (RUPIA 1997) has replaced the first revision (RUPIA 1962) or the original 1931 law (UPIA 1931).
Therefore, beneficiaries will likely be sensitive to the fiduciary's determinations of income versus principal.