Limitations on the Trustee's Power to Adjust
Publication Date
Winter 2008
Volume
42
Document Type
Article
Abstract
Editors' Synopsis: This Article examines the Uniform Principal and Income Act's acceptance of the modem portfolio theory of investment, which focuses on the total return of a trust. The Uniform Principal and Income Act introduces the power to adjust, which allows a trustee to allocate between income and principal based on principles of fairness rather than the type of asset return. The Article analyzes the factors that determine when a trustee has the power to adjust and what limitations on the power might apply. The Article also discusses the hierarchy of judicial remedies available under the Act to guide a trustee uncertain about the power to adjust in a given trust situation
Recommended Citation
S. Alan Medlin, Limitations on the Trustee's Power to Adjust, 42 Real Prop. Prob. & Tr. J. 717 (2008)