NY S04866

Amends the Estates, Powers and Trusts Law to expand trustee authority in adjusting allocations between trust income and principal under the prudent investor standard.

Authorizes trustees to allocate to principal any form of receipt normally characterized as income, and to specify particular receipts being reallocated.

Permits trustees to allocate to income any asset normally characterized as principal, including original principal, accumulated income, or realized/unrealized appreciation, with ability to specify particular assets.

Allows trustees with unlimited discretionary power to distribute principal to allocate to income part or all of realized gains from sale, exchange, or disposition of specified principal assets.

Takes effect immediately and applies to all trusts regardless of when established.