Arizona Summary of Principal Terms
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FAQ
Principal and Income The principal of an estate or trust is the amount originally received, plus capital gains and less debts, expenses, and capital losses. The principal is sometimes called the "corpus" (or body) of the estate or trust. The income is the interest, dividends, and other income earned by the principal.
Title 14 - Trusts, Estates and Protective Proceedings.
The Uniform Law Commissioners approved a revised Uniform Principal and Income Act in the Summer of 1997, and the Act is currently in different stages of the adoption process in various states. It has now been adopted in Arkansas, California, Connecticut, Iowa, North Dakota, Oklahoma, Virginia and West Virginia.
In Arizona, beneficiaries are afforded certain rights and protections to ensure that their interests are safeguarded. Vested beneficiaries have the right to receive essential information about the trust, including an annual accounting of the trust's assets and transactions.
The Act requires the trustee to undertake certain fiduciary duties to account for the differences between the principal assets of the trust, or trust corpus, and the income those assets create.