AK SB234

Adopts the Uniform Fiduciary Income and Principal Act as new Alaska Statutes Chapter 13.39, replacing and repealing the existing Alaska Principal and Income Act (AS 13.38), to govern how fiduciaries allocate receipts and disbursements between income and principal for trusts, estates, and life estates

Grants fiduciaries the power to adjust between income and principal without court approval to administer trusts impartially, with a presumption that such allocations are fair and reasonable; fiduciaries acting in good faith are shielded from liability for exercising or not exercising this power

Authorizes fiduciaries to convert income trusts to unitrusts (and vice versa) or change unitrust calculation methods without court approval, subject to a notice-and-objection process requiring at least 30 days' notice to beneficiaries and settlors; unitrust rates for trusts qualifying for special tax benefits or with non-independent fiduciaries must be between 3% and 5%

Provides detailed rules for allocating specific types of receipts (entity distributions, rental property, insurance proceeds, deferred compensation, minerals, timber, derivatives, and asset-backed securities) and disbursements (fiduciary compensation, taxes, environmental costs, depreciation) between income and principal

Applies to trusts and estates existing or created on or after the effective date, with transition provisions allowing fiduciaries holding pre-existing interests in minerals, water, natural resources, or timberland to continue using their prior allocation methods