Legislation
SECTION 7-1.6
Application of principal to income beneficiary
Estates, Powers & Trusts (EPT) CHAPTER 17-B, ARTICLE 7, PART 1
§ 7-1.6 Application of principal to income beneficiary
(a) Notwithstanding any contrary provision of law, the court having
jurisdiction of an express trust, heretofore created or declared, to
receive the income from property and apply it to the use of or pay it to
any person, unless otherwise provided in the disposing instrument, may
in its discretion make an allowance from principal to any income
beneficiary whose support or education is not sufficiently provided for,
to the extent that such beneficiary is indefeasibly entitled to the
principal of the trust or any part thereof or, in case the income
beneficiary is not entitled to the principal of the trust or any part
thereof, to the extent that all persons beneficially interested in the
trust are adult and competent and consent thereto in writing; provided
that the court, after a hearing on notice to all those beneficially
interested in the trust in such manner as the court may direct, is
satisfied that the original purpose of the creator of the trust cannot
be carried out and that such allowance effectuates the intention of the
creator.
(b) Notwithstanding any contrary provision of law, the court having
jurisdiction of an express trust, hereafter created or declared, to
receive income from property and apply it to the use of or pay it to any
person, unless otherwise provided in the disposing instrument, may in
its discretion make an allowance from principal to any income
beneficiary whose support or education is not sufficiently provided for,
whether or not such person is entitled to the principal of the trust or
any part thereof; provided that the court, after a hearing on notice to
all those beneficially interested in the trust in such manner as the
court may direct, is satisfied that the original purpose of the creator
of the trust cannot be carried out and that such allowance effectuates
the intention of the creator.
(c) In the event that an income beneficiary to whom an allowance is
made, as provided in this section, is or becomes entitled to a share of
the principal of the trust, such allowance, without interest thereon,
shall be a charge upon such share.
(d) If the application or the possibility of the application of this
section to any trust would reduce or eliminate a charitable deduction
otherwise available to any person or entity under the income tax, gift
tax or estate tax provisions of the internal revenue code, the
provisions of this section shall not apply to such trust.
(e) A supplemental needs trust which conforms to the provisions of
7-1.12 of this article shall be construed in accordance with the
provisions of that section.
(a) Notwithstanding any contrary provision of law, the court having
jurisdiction of an express trust, heretofore created or declared, to
receive the income from property and apply it to the use of or pay it to
any person, unless otherwise provided in the disposing instrument, may
in its discretion make an allowance from principal to any income
beneficiary whose support or education is not sufficiently provided for,
to the extent that such beneficiary is indefeasibly entitled to the
principal of the trust or any part thereof or, in case the income
beneficiary is not entitled to the principal of the trust or any part
thereof, to the extent that all persons beneficially interested in the
trust are adult and competent and consent thereto in writing; provided
that the court, after a hearing on notice to all those beneficially
interested in the trust in such manner as the court may direct, is
satisfied that the original purpose of the creator of the trust cannot
be carried out and that such allowance effectuates the intention of the
creator.
(b) Notwithstanding any contrary provision of law, the court having
jurisdiction of an express trust, hereafter created or declared, to
receive income from property and apply it to the use of or pay it to any
person, unless otherwise provided in the disposing instrument, may in
its discretion make an allowance from principal to any income
beneficiary whose support or education is not sufficiently provided for,
whether or not such person is entitled to the principal of the trust or
any part thereof; provided that the court, after a hearing on notice to
all those beneficially interested in the trust in such manner as the
court may direct, is satisfied that the original purpose of the creator
of the trust cannot be carried out and that such allowance effectuates
the intention of the creator.
(c) In the event that an income beneficiary to whom an allowance is
made, as provided in this section, is or becomes entitled to a share of
the principal of the trust, such allowance, without interest thereon,
shall be a charge upon such share.
(d) If the application or the possibility of the application of this
section to any trust would reduce or eliminate a charitable deduction
otherwise available to any person or entity under the income tax, gift
tax or estate tax provisions of the internal revenue code, the
provisions of this section shall not apply to such trust.
(e) A supplemental needs trust which conforms to the provisions of
7-1.12 of this article shall be construed in accordance with the
provisions of that section.