(a) A trust shall be administered with due regard to the respective interests of income beneficiaries and remainder beneficiaries. A trust is so administered with respect to the allocation of receipts and expenditures if a receipt is credited or an expenditure is charged to income or principal or partly to each:

(1) In accordance with the terms of the trust notwithstanding contrary provisions of this chapter;

(2) In the absence of any contrary terms of the trust in accordance with the provisions of this chapter; or

(3) If neither of the preceding rules of administration is applicable, in accordance with what is reasonable and equitable in view of:

(A) The interests of income beneficiaries as well as of remainder beneficiaries; and

(B) The manner in which a prudent person acting in a like capacity would act in the management of the property of another.

(b) If the trust gives the trustee discretion in crediting a receipt or charging an expenditure to income or principal or partly to each, no inference that the trustee has improperly exercised such discretion shall arise from the fact that the trustee has made an allocation contrary to a subsequent provision of this chapter.