75A-5-307. Applicable value.
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Effective 9/1/2024
75A-5-307. Applicable value.
(1)A unitrust policy shall provide the method for determining the fair market value of an asset for the purpose of determining the unitrust amount, including:
(a)the frequency of valuing the asset, which need not require a valuation in every period; and
(b)the date for valuing the asset in each period that the asset is valued.
(2)Except as otherwise provided in Subsection 75A-5-309 (2)(b), a unitrust policy may provide methods for determining the amount of the net fair market value of the trust to take into account in determining the applicable value, including:
(a)obtaining an appraisal of an asset for which fair market value is not readily available;
(b)exclusion of specific assets or groups or types of assets;
(c)other exceptions or modifications of the treatment of specific assets or groups or types of assets;
(d)identification and treatment of cash or property held for distribution;
(e)use of:
(i)an average of fair market values over a stated number of preceding periods; or
(ii)another mathematical blend of fair market values over a stated number of preceding periods;
(f)a limit on how much the applicable value of all assets, groups of assets, or individual assets may increase over:
(i)the corresponding applicable value for the preceding period; or
(ii)a mathematical blend of applicable values over a stated number of preceding time periods;
(g)a limit on how much the applicable value of all assets, groups of assets, or individual assets may decrease below:
(i)the corresponding applicable value for the preceding period; or
(ii)a mathematical blend of applicable values over a stated number of preceding periods;
(h)the treatment of accrued income and other features of an asset that affect value; and
(i)determining the liabilities of the trust, including treatment of liabilities to conform with the treatment of assets under Subsections (2)(a) through (h).
Renumbered and Amended by Chapter 364 , 2024 General Session