3353g

Trust receipts shall be credited and expenditures charged to income or principal, in whole or in part, in the terms of the trust. If the trust does not provide the item to which such receipts and expenditures shall be charged or credited, respectively, it shall be done according to what is just and reasonable to the interest of both beneficiaries and to what an average prudent person would do while administering his own affairs.However, if the terms of the trust empower the trustee to credit a receipt or charge an expenditure to trust income or principal, or partially to each, failure of the trustee to act in accordance with this chapter shall not entail imprudence or prejudice. History —Aug. 31, 2012, No. 219, § 41.