Statutory Techniques for Balancing the Financial Interests of Trust Beneficiaries
Alyssa A. DiRusso
Samford University - Cumberland School of Law
Kathleen M. Sablone
University of San Francisco Law Review, Vol. 39, p. 261, 2005
Trustees have long struggled with the duty to balance the interests of current and future beneficiaries of a trust. As modern portfolio investment techniques and laws have encouraged trustees to invest for total return, trust legislation has developed that empowers trustees to mitigate the inequitable effects to beneficiaries of this investment approach. Key legislation includes the Uniform Principal and Income Act, unitrust statutes, the Uniform Management of Institutional Funds Act, and private foundation tax compliance statutes. This Article explains why these acts are important in the context of current investment practices and laws, details the different approaches, and compares them. It concludes by suggesting a broadening of the application of these laws, including the extension of the Uniform Management of Institutional Funds Act to non-institutional trustees.
Number of Pages in PDF File: 58
Keywords: Principal and income, UMIFA, unitrust, trust, investment, 4945, UPIA
JEL Classification: K00, K3Accepted Paper Series
Date posted: October 20, 2005 ; Last revised: September 12, 2010
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