How does the Trustee comply with the terms of the Principal and Income Act?
The Principal and Income Act is a very detailed law which specifies what items are allocated to income and what items are allocated to principal. Since most trust documents provide for distribution of income to one beneficiary and principal to others, this is critical in the administration of a trust. This is a function, which the Trustee may wish to delegate to a third party. By obtaining professional assistance, the Trustee may limit himself or herself from personal liability.
