75A-5-309. Special tax benefits -- Other rules.

210 words·~1 min read·/ut/title-75a/chapter-5/75a-5-309

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

Effective 9/1/2024

(1)A unitrust policy may:

(a)provide methods and standards for:

(i)determining the timing of distributions;

(ii)making distributions in cash or in kind or partly in cash and partly in kind; or

(iii)correcting an underpayment or overpayment to a beneficiary based on the unitrust amount if there is an error in calculating the unitrust amount;

(b)specify sources and the order of sources, including categories of income for federal income tax purposes, from which distributions of a unitrust amount are paid; or

(c)provide other standards and rules the fiduciary determines serve the interests of the beneficiaries.

(2)If a trust qualifies for a special tax benefit or a fiduciary is not an independent person:

(a)the unitrust rate established under Section 75A-5-306 may not be less than 3% or more than 5%;

(b)the only provisions of Section 75A-5-307 that apply are Subsections 75A-5-307

(1)and (2)(a), (d), (e)(i), and (i);

(c)the only period that may be used under Section 75A-5-308 is a calendar year under Subsection 75A-5-308 (1); and

(d)the only other provisions of Section 75A-5-308 that apply are Subsections 75A-5-308 (2)(b)(i) and (c).

Renumbered and Amended by Chapter 364 , 2024 General Session