State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-1-104_25

§ 37A‑1‑104.25. Determination of character of unitrust amount.

Unless the terms of thegoverning instrument of the express total return unitrust specifically provideotherwise, the trustee:

(1)        Shall consider theunitrust amount as paid from net accounting income determined as if the trustwere not a unitrust;

(2)        Shall then considerthe unitrust amount as paid from ordinary income not allocable to netaccounting income;

(3)        May, in thetrustee's discretion, consider the unitrust amount as paid from net short‑termgain described in section 1222(5) of the Code and then from net long‑termcapital gain described in section 1222(7) of the Code so long as thisdiscretionary power is exercised consistently and in a reasonable and impartialmanner, but the amount so paid from net capital gains may not be greater thanthe excess of the unitrust amount over the amount of distributable net incomeas defined in section 643(a) of the Code without regard to section 1.643(a)‑3(b)of the treasury regulations; and

(4)        Shall then considerthe unitrust amount as coming from the principal of the trust. (2005‑244, s. 6.)

State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-1-104_25

§ 37A‑1‑104.25. Determination of character of unitrust amount.

Unless the terms of thegoverning instrument of the express total return unitrust specifically provideotherwise, the trustee:

(1)        Shall consider theunitrust amount as paid from net accounting income determined as if the trustwere not a unitrust;

(2)        Shall then considerthe unitrust amount as paid from ordinary income not allocable to netaccounting income;

(3)        May, in thetrustee's discretion, consider the unitrust amount as paid from net short‑termgain described in section 1222(5) of the Code and then from net long‑termcapital gain described in section 1222(7) of the Code so long as thisdiscretionary power is exercised consistently and in a reasonable and impartialmanner, but the amount so paid from net capital gains may not be greater thanthe excess of the unitrust amount over the amount of distributable net incomeas defined in section 643(a) of the Code without regard to section 1.643(a)‑3(b)of the treasury regulations; and

(4)        Shall then considerthe unitrust amount as coming from the principal of the trust. (2005‑244, s. 6.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-1-104_25

§ 37A‑1‑104.25. Determination of character of unitrust amount.

Unless the terms of thegoverning instrument of the express total return unitrust specifically provideotherwise, the trustee:

(1)        Shall consider theunitrust amount as paid from net accounting income determined as if the trustwere not a unitrust;

(2)        Shall then considerthe unitrust amount as paid from ordinary income not allocable to netaccounting income;

(3)        May, in thetrustee's discretion, consider the unitrust amount as paid from net short‑termgain described in section 1222(5) of the Code and then from net long‑termcapital gain described in section 1222(7) of the Code so long as thisdiscretionary power is exercised consistently and in a reasonable and impartialmanner, but the amount so paid from net capital gains may not be greater thanthe excess of the unitrust amount over the amount of distributable net incomeas defined in section 643(a) of the Code without regard to section 1.643(a)‑3(b)of the treasury regulations; and

(4)        Shall then considerthe unitrust amount as coming from the principal of the trust. (2005‑244, s. 6.)

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