20 Pennsylvania Consolidated Statutes Chapter 81 - Principal And Income

• Chapter Notes

Subchapter A.  Preliminary Provisions; Power to Adjust; Power to Convert to Unitrust

• Section 8101 - Short Title Of Chapter
  This chapter shall be known and may be cited as the Pennsylvania Uniform Principal and Income Act.
• Section 8102 - Definitions
  The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly...
• Section 8103 - Fiduciary Duties; General Principles
  (a) Allocation.--In allocating receipts and disbursements to or between principal and income and with respect to any matter within the scope of this chapter,...
• Section 8104 - Trustee's Power To Adjust
  (a) Adjustment.--Subject to subsections (c) and (f), a trustee may adjust between principal and income by allocating an amount of income to principal or...
• Section 8105 - Power To Convert To Unitrust
  (a) Conversion.--Unless expressly prohibited by the governing instrument, a trustee may release the power under section 8104 (relating to trustee's power to adjust) and...
• Section 8106 - Judicial Control Of Discretionary Powers
  (a) Standard of review.--A court shall not change a fiduciary's decision to exercise or not to exercise a discretionary power conferred by this chapter...
• Section 8107 - Express Trusts
  (a) General rule.--In the absence of a contrary intent appearing in the governing instrument of an express unitrust, the governing instrument shall be construed...
• Section 8108 - (Reserved)
• Section 8109 - (Reserved)
• Section 8110 - (Reserved)
• Section 8111 - (Reserved)
• Section 8112 - (Reserved)
• Section 8113 - Charitable Trusts
  (a) Election.--Notwithstanding the foregoing provisions of this chapter, the trustee of a trust held exclusively for charitable purposes may elect to be governed by...

Subchapter B.  Decedent's Estate or Terminating Income Interest

• Section 8121 - Determination And Distribution Of Net Income
  After a decedent dies in the case of an estate or after an income interest in a trust ends, the following rules apply: (1)...
• Section 8122 - Distribution To Residuary And Remainder Beneficiaries
  (a) Distribution of net income.--Each beneficiary described in section 8121(4) (relating to determination and distribution of net income) is entitled to receive a portion...

Subchapter C.  Apportionment at Beginning and End of Income Interest

• Section 8131 - When Right To Income Begins And Ends
  (a) Accrual of income interest.--An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest...
• Section 8132 - Apportionment Of Receipts And Disbursements When Decedent Dies Or Income Interest Begins
  (a) Allocation to principal.--Unless section 8121(1) (relating to determination and distribution of net income) applies, a trustee shall allocate an income receipt or disbursement...
• Section 8133 - Apportionment When Income Interest Ends
  (a) End of mandatory income interest.--When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date,...

Subchapter D.  Allocation of Receipts During Administration of Trust

• Section 8141 - Character Of Receipts
  (a) Allocation to income.--Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity, including reinvested cash...
• Section 8142 - Distribution From Trust Or Estate
  A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust...
• Section 8143 - Business And Other Activities Conducted By Trustee
  (a) Separate accounting for business or activity.--If a trustee that conducts a business or other activity determines that it is in the best interest...
• Section 8144 - Principal Receipts
  A trustee shall allocate to principal any of the following: (1) To the extent not allocated to income under this chapter, assets received from:...
• Section 8145 - Rental Property
  (a) Rent.--To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an...
• Section 8146 - Obligation To Pay Money
  (a) Interest allocated to income.--An amount received as interest, whether determined at a fixed, variable or floating rate, on an obligation to pay money...
• Section 8147 - Insurance Policies And Similar Contracts
  (a) General rule.-- (1) Except as otherwise provided in subsection (b) or (c), a trustee shall allocate to principal the proceeds of a life...
• Section 8148 - Insubstantial Allocations Not Required
  If a trustee determines that an allocation between principal and income required by section 8149 (relating to retirement benefits, individual retirement accounts, deferred compensation,...
• Section 8149 - Retirement Benefits, Individual Retirement Accounts, Deferred Compensation, Annuities And Similar Payments
  (a) General rule.-- (1) The trustee shall allocate to income the greater of: (i) the portion of a payment characterized by the payor as...
• Section 8150 - Liquidating Asset
  (a) Allocation.--A trustee shall allocate to income 10% of the receipts from a liquidating asset and the balance to principal. (b) Definition.--As used in...
• Section 8151 - Minerals, Water And Other Natural Resources
  (a) Allocation for receipts from minerals and other natural resources.--To the extent that a trustee accounts for receipts from an interest in minerals or...
• Section 8152 - Timber
  (a) Allocation of net receipts.--To the extent that a trustee accounts for receipts from the sale of timber and related products under this section,...
• Section 8153 - Property Not Productive Of Income
  (a) General rule.--If a Federal estate or gift tax marital deduction is allowed for all or part of a trust whose income is required...
• Section 8154 - Derivatives And Options
  (a) Derivatives.--To the extent that a trustee does not account under section 8143 (relating to business and other activities conducted by trustee) for transactions...
• Section 8155 - Asset-backed Securities
  (a) General rule.--If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets: (1)...

Subchapter E.  Allocation of Disbursements During Administration of Trust

• Section 8161 - Mandatory Disbursements From Income
  A trustee shall make the following disbursements from income: (1) Interest, except interest on death taxes. (2) Ordinary repairs. (3) Real estate and other...
• Section 8162 - Mandatory Disbursements From Principal
  (a) Mandatory disbursements.--A trustee shall make the following disbursements from principal: (1) Extraordinary expenses incurred in connection with the administration, management or preservation of...
• Section 8163 - Discretionary Allocation Of Disbursements
  Subject to sections 8161 (relating to mandatory disbursements from income) and 8162 (relating to mandatory disbursements from principal), a trustee may, in the trustee's...
• Section 8164 - Transfers From Income To Principal For Depreciation
  (a) Transfers.--A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation....
• Section 8165 - Transfers From Income To Reimburse Principal
  (a) Permissible reimbursements.--A trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to...
• Section 8166 - Income Taxes
  (a) Receipts allocated to income.--A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income....
• Section 8167 - Adjustments Between Principal And Income Because Of Taxes
  A trustee may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder...

Subchapters F and G (Reserved)
Subchapter H.  Miscellaneous Provisions

• Section 8191 - Uniformity Of Application And Construction
  In applying and construing this chapter, consideration shall be given to the need to promote uniformity of the law with respect to its subject...

Last modified: October 8, 2016