14-7402. Fiduciary duties; general
principles
A. In allocating receipts and disbursements to or between principal and income, and
with respect to any matter within the scope of sections 14-7405 through 14-7409, a
fiduciary:
1. Shall administer a trust or estate in accordance with the terms of the trust or
the will, even if there is a different provision in this article.
2. May administer a trust or estate by the exercise of a discretionary power of
administration given to the fiduciary by the terms of the trust or the will, even if the
exercise of the power produces a result different from a result required or permitted by
this article.
3. Shall administer a trust or estate in accordance with this article if the terms
of the trust or the will do not contain a different provision or do not give the
fiduciary a discretionary power of administration.
4. Shall add a receipt or charge a disbursement to principal to the extent that the
terms of the trust and this article do not provide a rule for allocating the receipt or
disbursement to or between principal and income.
B. In exercising the power to adjust under section 14-7403, subsection A or a
discretionary power of administration regarding a matter within the scope of this
article, whether granted by the terms of a trust, a will or this article, a fiduciary
shall administer a trust or estate impartially, based on what is fair and reasonable to
all of the beneficiaries, except to the extent that the terms of the trust or the will
clearly manifest an intention that the fiduciary shall or may favor one or more of the
beneficiaries. A determination in accordance with this article is presumed to be fair and
reasonable to all of the beneficiaries.
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