NY EPTL 11-2.3(b)(5): Nomenclature

The power given to a trustee in EPTL 11-2.3(b)(5) to make adjustments between income and principal is known as the "power to adjust." It can also be referred to in other ways:

• A "power to reallocate."
• An "equitable adjustment." For example, in the Practice Commentaries for Article 11-a Uniform Principal and Income Act in McKinney's Consolidated Laws of New York Annotated, Margaret Valentine Turano writes, "Under a new subparagraph (b)(5) of EPTL 11-2.3, she can make equitable adjustments between income and principal (as defined by this Article, EPTL 11-1-A, which applies to trust property received and expenditures made on January 1, 2002 and thereafter (L.2001, ch. 243, § 5, amending EPTL 11-2.1(m)) . . . ." (emphasis added).

For additional information on the power to adjust in New York, see the Outline.