N.Y. Estates, Powers & Trusts Law § 11-a-1.3: Fiduciary duties; general principles

§ 11-A-1.3 Fiduciary duties; general principles

(a) In allocating receipts and disbursements to or between principal

and income, and with respect to any matter within the scope of parts 2

and 3, a fiduciary:

(1) shall administer a trust or estate in accordance with the terms of

the trust or the will, even if there is a different provision in this

article;

(2) may administer a trust or estate by the exercise of a

discretionary power of administration given to the fiduciary by the

terms of the trust or the will, even if the exercise of the power

produces a result different from a result required or permitted by this

article;

(3) shall administer a trust or estate in accordance with this article

if the terms of the trust or the will do not contain a different

provision or do not give the fiduciary a discretionary power of

administration; and

(4) shall add a receipt or charge a disbursement to principal to the

extent that the terms of the trust or the will and this article 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 article, whether granted by the terms of

a trust, a will, or this article, a fiduciary shall administer a trust

or estate impartially, based on what is fair and reasonable to all of

the beneficiaries, except to the extent that the terms of the trust or

the will clearly manifest an intention that the fiduciary shall or may

favor one or more of the beneficiaries. A determination in accordance

with this article is presumed to be fair and reasonable to all of the

beneficiaries.