Uniform Principal And Income Act
Encyclopedia
The Uniform Principal and Income Act (UPAIA) is one of the uniform acts that have been promulgated in an attempt to harmonize the law in all fifty U.S. states. The Act was completed by the Commissioners on Uniform State Laws
in 1997, and amended in 2000.
The purpose of the UPAIA (sometimes referred to as the UPIA) is to provide procedures by which trustee
s administering trusts
, and personal representative
s administering estate
s, allocate receipts and payments to principal and income. The aim of the law is to ensure that the intention of the trust creator or decedent is carried out, and to govern the proper distribution of assets to trust beneficiaries, heirs and devisees.
To be enacted into law, the Act must be adopted by the state legislature. To date, most states have adopted the Act (sometimes with modifications)http://www.nccusl.org/Update/uniformact_factsheets/uniformacts-fs-upia.asp.
National Conference of Commissioners on Uniform State Laws
The National Conference of Commissioners on Uniform State Laws is a non-profit, unincorporated association commonly referred to as the U.S. Uniform Law Commission. It consists of commissioners appointed by each state, the District of Columbia, the Commonwealth of Puerto Rico and the United States...
in 1997, and amended in 2000.
The purpose of the UPAIA (sometimes referred to as the UPIA) is to provide procedures by which trustee
Trustee
Trustee is a legal term which, in its broadest sense, can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another...
s administering trusts
Trust law
In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another...
, and personal representative
Personal representative
In common law jurisdictions, a personal representative is the generic term for an executor for the estate of a deceased person who left a will or the administrator of an intestate estate. In either case, a surrogate court of competent jurisdiction issues a finding of fact, including that a will...
s administering estate
Estate (law)
An estate is the net worth of a person at any point in time. It is the sum of a person's assets - legal rights, interests and entitlements to property of any kind - less all liabilities at that time. The issue is of special legal significance on a question of bankruptcy and death of the person...
s, allocate receipts and payments to principal and income. The aim of the law is to ensure that the intention of the trust creator or decedent is carried out, and to govern the proper distribution of assets to trust beneficiaries, heirs and devisees.
To be enacted into law, the Act must be adopted by the state legislature. To date, most states have adopted the Act (sometimes with modifications)http://www.nccusl.org/Update/uniformact_factsheets/uniformacts-fs-upia.asp.