The Uniform Principal and Interest Act, also known as the Uniform Principal and Income Act, is a uniform statute, adopted by most states, that in its most recent version allows some trustees to make adjustments that were not formerly allowed. For example, a trustee could distribute principal to income beneficiaries if it were necessary to carry out the purpose of the trust.
See an example of Vermont’s Uniform Principal and Income Act here.
[Last updated in February of 2022 by the Wex Definitions Team]