79-4605. Trusts which are private foundations, charitable trusts or split-interest trusts; acts prohibited.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)In the administration of any trust which is a "private foundation," as defined in § 509 of the internal revenue code of 1954, a "charitable trust," as defined in § 4947

(1)of the internal revenue code of 1954, or a "split-interest trust" as defined in § 4947

(2)of the internal revenue code of 1954, the following acts shall be prohibited:

(a)Engaging in any act of "self-dealing" (as defined in § 4941

(d)of the internal revenue code of 1954), which would give rise to any liability for the tax imposed by § 4941

(a)of the internal revenue code of 1954;

(b)retaining any "excess business holdings" (as defined in § 4943

(c)of the internal revenue code of 1954) which would give rise to any liability for the tax imposed by § 4943

(a)of the internal revenue code of 1954;

(c)making any investments which would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of § 4944 of the internal revenue code of 1954, so as to give rise to any liability for the tax imposed by § 4944

(a)of the internal revenue code of 1954; and

(d)making any "taxable expenditures" (as defined in § 4945

(d)of the internal revenue code of 1954) which would give rise to any liability for the tax imposed by § 4945

(a)of the internal revenue code of 1954.

This section shall not apply either to those split-interest trusts or to amounts thereof which are not subject to the prohibitions applicable to private foundations by reason of the provisions of § 4947 of the internal revenue code of 1954.