Calculating Trust Accounting Income Under Uniform Principal and Income Act

Recording of a 110-minute CPE webinar with Q&A

Conducted on Wednesday, November 1, 2017

Recorded event now available

Program Materials

This webinar will provide tax advisers and compliance professionals with a deeper exploration of the fiduciary income calculations and determinations provided in the Uniform Principal and Income Act (UPIA). The panel detail how to apply UPIA provisions to differentiate between corpus and income, and identify trust provisions that can create challenges in allocating trust accounting income under UPIA terms.


Advisers preparing trust income tax returns are faced with the initial challenge of calculating trust accounting income (TAI), the amount generally available to the income beneficiaries of a trust or estate. Calculating TAI is dependent on the trust operating instrument and state law. Virtually every state has adopted, in full or with changes, the UPIA to determine how income and corpus of a trust are allocated.

The UPIA details the proper financial treatment of payment streams from various asset sources. The UPIA outlines default treatment for capital gains, depreciation and amortization. Absent a specific and permissible provision in the trust documents, most states default to UPIA treatment. This becomes critical in making distribution decisions before the filing of the tax return.

Trust accountants and tax advisers also need to be able to identify the critical differences between UPIA fiduciary accounting principles and income tax treatment to avoid tax consequences and beneficiary challenges.

Listen as our experienced panel provides a deep and practical guide to mastering fiduciary accounting income beyond the basics.



  1. UPIA framework for determining principal and income in TAI calculations
  2. Components of TAI
  3. Differences between TAI and GAAP accounting
  4. Power to adjust
  5. UPIA provisions dealing with specific assets and payment streams
  6. Where a trust instrument may deviate from UPIA treatment


The panel will discuss these and other important questions:

  • Default UPIA provisions on treatment of bond and financial instrument periodic income and sales proceeds
  • Reconciling trust operating documents with UPIA provisions for TAI calculations
  • Interpreting UPIA provisions in circumstances where operating documents are silent or inconclusive
  • UPIA approach to timing and character of distribution amount


Jason K. Connolly
Jason K. Connolly
Law Offices of Sanger & Manes

Mr. Connolly has worked on the preparation and review of hundreds of fiduciary accountings during his 25 years working...  |  Read More

Sanger, Howard
Howard L. Sanger

Sanger & Manes

Mr. Sanger has over a quarter century of experience in estate planning, trust and estate administration, tax...  |  Read More