AK SB192

Allows a fiduciary to petition a court to determine whether a proposed decision will constitute an abuse of discretion, with the beneficiary bearing the burden to prove abuse if the petition includes sufficient information about the proposed decision and its effects.

Authorizes fiduciaries to allocate capital gains from the sale or exchange of capital assets to income, provided the fiduciary exercises discretion reasonably and impartially.

Prohibits fiduciaries from allocating capital gains to income if doing so would cause an estate or trust asset to be included in an individual's gross estate for federal estate tax purposes or cause an individual to be treated as making a gift for federal gift tax purposes.

Amends the Principal Receipts section to clarify that capital gains are allocated to principal except as provided by the new discretionary allocation statute.

Repeals AS 13.38.220(b)(4), a prior provision related to fiduciary discretion standards.