2002 Alaska Statutes
Title 13 DECEDENTS' ESTATES, GUARDIANSHIPS, TRANSFERS, AND TRUSTS
Chapter 13.38. PRINCIPAL AND INCOME OF TRUSTS
Sec. 13.38.010. Duty of trustee as to receipts and expenditure.
(a) In administering a trust, a trustee shall credit a receipt or charge an expenditure to income or principal or partly to each
(1) in accordance with the terms of the trust instrument, regardless of contrary provisions of this chapter;
(2) in the absence of a contrary term of the trust instrument, in accordance with this chapter; or
(3) if neither paragraph (1) or (2) of this subsection applies in accordance with reason and equity to the interests of those entitled to income and principal, in the way a person of ordinary prudence, discretion, and judgment would act in managing the person's own affairs.
(b) If the trust instrument gives the trustee discretion in crediting a receipt or charging an expenditure to income or principal or partly to each, no inference of imprudence or partiality arises from the fact that the trustee makes an allocation contrary to a provision of this chapter.
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