The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Accounting period." A calendar year unless another 12-month period is selected by a fiduciary. The term includes a portion of a calendar year or other 12-month period which begins when an income interest begins or ends when an income interest ends.

"Beneficiary." Includes:

(1) in the case of a decedent's estate, any heir, legatee and devisee; and

(2) in the case of a trust, an income beneficiary and a remainder beneficiary.

"Fiduciary." A personal representative or a trustee.

"Income." Money or property which a fiduciary receives as current return from a principal asset. The term includes a portion of receipts from a sale, exchange or liquidation of a principal asset to the extent provided in Subchapter D (relating to allocation of receipts during administration of trust).

"Income beneficiary." A person to whom or which net income of a trust is or may be payable.

"Income interest." The right of an income beneficiary to receive all or part of net income, whether the governing instrument requires it to be distributed or authorizes it to be distributed in the trustee's discretion.

"Mandatory income interest." The right of an income beneficiary to receive net income which the governing instrument requires the fiduciary to distribute.

"Net income." The:

(1) total receipts allocated to income during an accounting period; minus

(2) disbursements made from income during the period; plus or minus

(3) transfers under this chapter to or from income during the period.

"Person." Any individual; corporation; business trust; estate; trust; partnership; limited liability company; association; joint venture; government; governmental subdivision, agency or instrumentality; public corporation; or other legal or commercial entity.

"Principal." Property held in trust for distribution to a remainder beneficiary when the trust terminates or property held in trust in perpetuity.

"Remainder beneficiary." A person entitled to receive principal when an income interest ends.

"Sui juris beneficiary." Includes:

(1) a court-appointed guardian of an incapacitated beneficiary;

(2) an agent for an incompetent beneficiary; and

(3) a court-appointed guardian of a minor beneficiary's estate.

"Trust." Includes a legal life estate arrangement.

"Trustee." Includes an original, additional or successor trustee whether or not appointed or confirmed by a court.

(July 7, 2006, P.L.625, No.98, eff. 60 days)

2006 Amendment. Act 98 amended the defs. of "principal" and "sui juris beneficiary."