SECTIONS 16320-16328 - California Statutes

PROBATE CODE

SECTION 16320-16328

16320. This chapter may be cited as the Uniform Principal and
Income Act.

16321. The definitions in this article govern the construction of
this chapter.

16322. "Accounting period" means a calendar year unless another
12-month period is selected by a fiduciary. The term includes a
portion of a calendar year or other 12-month period that begins when
an income interest begins or ends when an income interest ends.

16323. "Fiduciary" means a personal representative or a trustee.

16324. "Income" means money or property that a fiduciary receives
as current return from a principal asset. The term includes a portion
of receipts from a sale, exchange, or liquidation of a principal
asset, to the extent provided in Article 5.1 (commencing with Section
16350), 5.2 (commencing with Section 16355), or 5.3 (commencing with
Section 16360).

16325. "Income beneficiary" means a person to whom net income of a
trust is or may be payable.

16326. "Income interest" means the right of an income beneficiary
to receive all or part of net income, whether the trust requires it
to be distributed or authorizes it to be distributed in the trustee's
discretion.

16327. "Mandatory income interest" means the right of an income
beneficiary to receive net income that the trust requires the
fiduciary to distribute.

16328. "Net income" means the total receipts allocated to income
during an accounting period minus the disbursements made from income
during the accounting period, plus or minus transfers under this
chapter to or from income during the accounting period. During any
period in which the trust is being administered as a unitrust, either
pursuant to the powers conferred by Sections 16336.4 to 16336.6,
inclusive, or pursuant to the terms of the governing instrument, "net
income" means the unitrust amount, if the unitrust amount is no less
than 3 percent and no more than 5 percent of the fair market value
of the trust assets, whether determined annually or averaged on a
multiple year basis.