Summary: The current Uniform Principal and Income Act (UPIA), directs a trustee on how to allocate money to beneficiaries of an estate or trust as either principal or income. SB 522 replaces the Uniform Principal and Income Act (UPIA) with the Uniform Fiduciary Income and Principal Act (UFIPA) to recognize the development of modern portfolio theory that allows trustees to invest for the maximum total return, whether the return is in the form of income or growth of principal.
Click here to read the bill language
Article: California Replaces a Trust Investment Law (Think Advisor, July 7, 2023)
Press Release: Governor Newsom Signs Legislation 6.29.23 (Office of Governor Gavin Newsom, June 29, 2023)