The following definitions apply for purposes of this chapter: (a) âAccounting periodâ means a calendar year, unless a fiduciary selects another period of 12 calendar months or approximately 12 calendar months. The term includes a part of a calendar year or another period of 12 calendar months or approximately 12 calendar months that begins when an income interest begins or ends when an income interest ends. (b) âAsset-backed securityâ means a security that is serviced primarily by the money flows of a discrete pool of fixed or revolving receivables or other financial assets that by their terms convert into money within a finite time. The term includes rights or other assets that ensure the servicing or timely distribution of proceeds to the holder of the asset-backed security. The term does not include an asset to which Section 16340, 16348, or 16353 applies. (c) âBeneficiaryâ includes the following: (1) For a trust: (A) A current beneficiary, including a current income beneficiary and a beneficiary that may receive only principal. (B) A remainder beneficiary. (C) Any other successor beneficiary. (2) For an estate, an heir, legatee, and devisee. (3) For a life estate or term interest, a person that holds a life estate, term interest, or remainder or other interest following a life estate or term interest. (d) âCourtâ means the court in this state having jurisdiction relating to a trust, estate, or life estate or other term interest described in subdivision (b) of Section 16322. (e) âCurrent income beneficiaryâ means a beneficiary to which a fiduciary may distribute net income, whether or not the fiduciary also may distribute principal to the beneficiary. (f) âDistributionâ means a payment or transfer by a fiduciary to a beneficiary in the beneficiaryâs capacity as a beneficiary, made under the terms of the trust, without consideration other than the beneficiaryâs right to receive the payment or transfer under the terms of the trust. âDistribute,â âdistributed,â and âdistributeeâ have corresponding meanings. (g) âEstateâ means a decedentâs estate, and includes the property of the decedent as the estate is originally constituted and the property of the estate as it exists at any time during administration. (h) âFiduciaryâ includes a trustee, personal representative, life tenant, holder of a term interest, and person acting under a delegation from a fiduciary. âFiduciaryâ includes a person that holds property for a successor beneficiary whose interest may be affected by an allocation of receipts and expenditures between income and principal. If there are two or more cofiduciaries, the term includes all cofiduciaries acting under the terms of the trust and applicable law. (i) âIncomeâ means money or other property a fiduciary receives as current return from principal. The term includes a part of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in Article 4 (commencing with Section 16340). (j) âIncome interestâ means the right of a current income beneficiary to receive all or part of net income, whether the terms of the trust require the net income to be distributed or authorize the net income to be distributed in the fiduciaryâs discretion. The term includes the right of a current beneficiary to use property held by a fiduciary. (k) âIndependent personâ means a person that is not: (1) For a trust, any of the following: (A) A beneficiary that is a distributee or permissible distributee of trust income or principal or would be a distributee or permissible distributee of trust income or principal if either the trust or the interests of the distributees or permissible distributees of trust income or principal were terminated, assuming no power of appointment is exercised. (B) A settlor of the trust. (C) An individual whose legal obligation to support a beneficiary may be satisfied by a distribution from the trust. (2) For an
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