(1) In making an allocation or determination or exercising discretion under this chapter, a fiduciary shall do all of the following:(a) Act in good faith, based on what is a fair and reasonable fee to all beneficiaries;
(b) Administer a trust or estate impartially, except to the extent that the terms of the trust manifest an intent that the fiduciary favors one or more beneficiaries;
(c) Administer the trust or estate in accordance with the terms of the trust, even if there is a different provision in this chapter.
(d) Administer the trust or estate in accordance with this chapter, except to the extent that the terms of the trust provide otherwise or authorize the fiduciary to determine otherwise.
(2) A fiduciary’s allocation, determination, or exercise of discretion under this chapter is presumed to be fair and reasonable to all beneficiaries. A fiduciary may exercise a discretionary power of administration given to the fiduciary by the terms of the trust, and an exercise of the power that produces a result different from a result required or permitted by this chapter does not create an inference that the fiduciary abused the fiduciary’s discretion.
(3) A fiduciary shall:(a) Add a receipt to principal, to the extent that the terms of the trust and this chapter do not allocate the receipt between income and principal;
(b) Charge a disbursement to principal, to the extent that the terms of the trust and this chapter do not allocate the disbursement between income and principal; and
(c) Within 65 days after the fiscal year ends, add any undistributed income to principal, unless otherwise provided by the terms of the trust.
(4) A fiduciary may exercise the power to adjust under s. 738.203(1), convert an income trust to a unitrust under ss. 738.301-738.310, change the percentage or method used to calculate a unitrust amount under ss. 738.301-738.310, or convert a unitrust to an income trust under ss. 738.301-738.310 if the fiduciary determines the exercise of the power will assist the fiduciary to administer the trust or estate impartially. (5) The fiduciary must consider the following factors in making the determination in subsection (4), including:(a) The terms of the trust.
(b) The nature, distribution standards, and expected duration of the trust.
(c) The effect of the allocation rules, including specific adjustments between income and principal, under ss. 738.301-738.416. (d) The desirability of liquidity and regularity of income.
(e) The desirability of the preservation and appreciation of principal.
(f) The extent to which an asset is used or may be used by a beneficiary.
(g) The increase or decrease in the value of principal assets, reasonably determined by the fiduciary.
(h) Whether and to what extent the terms of the trust give the fiduciary power to accumulate income or invade principal or prohibit the fiduciary from accumulating income or invading principal.
(i) The extent to which the fiduciary has accumulated income or invaded principal in preceding accounting periods.
(j) The effect of current and reasonably expected economic conditions.
(k) The reasonably expected tax consequences of the exercise of the power.
(l) The identities and circumstances of the beneficiaries.
(6) Except as provided in ss. 738.301-738.310, this chapter pertains to the administration of a trust and is applicable to any trust that is administered in this state or under its law. This chapter also applies to any estate that is administered in this state unless the provision is limited in application to a trustee, rather than a fiduciary. 
