72-34-403. Duty of trustee as to receipts and expenditures. (1) A trust shall be administered with due regard to the respective interests of income beneficiaries and remainder beneficiaries. A trust is so administered with respect to the allocation of receipts and expenditures if a receipt is credited or an expenditure is charged to income or principal or partly to each in any of the following ways:
     (a) in accordance with the terms of the trust instrument, notwithstanding contrary provisions of this part;
     (b) in the absence of any contrary terms of the trust instrument, in accordance with the provisions of this part; or
     (c) if neither subsection (a) nor (b) is applicable, in accordance with the standard of care provided in 72-34-114 and with what is reasonable and equitable in view of the interests of those entitled to income as well as of those entitled to principal.
     (2) If the trust gives the trustee discretion in crediting a receipt or charging an expenditure to income or principal or partly to each, no inference that the trustee has improperly exercised such discretion arises from the fact that the trustee has made an allocation contrary to a provision of this part.

     History: En. Sec. 140, Ch. 685, L. 1989.