Senate Bill 21-171 Summary

• Adds Article 1.2 to Title 15 establishing the "Uniform Fiduciary Income and Principal Act" to govern how fiduciaries allocate receipts and disbursements between income and principal in trusts and estates.

• Provides comprehensive rules for allocating various types of financial receipts (dividends, interest, capital gains, entity distributions) between income and principal accounts.

• Authorizes fiduciaries to convert income trusts to unitrusts, allowing distributions as a fixed percentage of trust assets rather than actual net income, with notice and objection procedures for beneficiaries.

• Establishes fiduciary duties requiring fair and impartial administration, with presumptions protecting good faith decisions and limiting court override to abuse of discretion cases.

• Takes effect January 1, 2022, with transition provisions preserving prior law for trusts that existed and were irrevocable before July 1, 2001, if trustees elected to continue under the prior Uniform Principal and Income Act.