2006 Georgia Code - 53-12-211

53-12-211. (a) In allocating receipts and disbursements to or between principal and income and with respect to any matter within the scope of this chapter, the following shall apply: (1) A trustee shall administer a trust in accordance with the governing instrument, even if there is a different provision in this chapter; (2) A trustee may administer a trust by the exercise of a discretionary power of administration regarding a matter within the scope of this chapter given to the trustee by the governing instrument, even if the exercise of the power produces a result different from a result required or permitted by this chapter. No inference that the trustee has improperly exercised the discretionary power shall arise from the fact that the trustee has made an allocation contrary to a provision of this chapter; (3) A trustee shall administer a trust in accordance with this chapter if the governing instrument does not contain a different provision or does not give the trustee a discretionary power of administration regarding a matter within the scope of this chapter; and (4) A trustee shall add a receipt or charge a disbursement to principal to the extent that the governing instrument and this chapter do not provide a rule for allocating the receipt or disbursement to or between principal and income. (b) In exercising a discretionary power of administration regarding a matter within the scope of this chapter, whether granted by the governing instrument or this chapter, including Code Section 53-12-220, relating to a trusteés power to adjust, and Code Section 53-12-221, relating to the power to convert to unitrust, a trustee shall administer a trust impartially based on what is fair and reasonable to all of the beneficiaries, except to the extent that the governing instrument clearly manifests an intention that the trustee shall or may favor one or more of the beneficiaries. A determination in accordance with this chapter is presumed to be fair and reasonable to all of the beneficiaries.

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