State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-1-104_4

§ 37A‑1‑104.4. Determination of unitrust amount.

(a)        The fair marketvalue of the trust shall be determined at least annually, using a valuationdate selected by the trustee in its discretion. The trustee, in its discretion,may use an average of the fair market value on the same valuation date for thecurrent fiscal year and not more than three preceding fiscal years, if the useof this average appears desirable to reduce the impact of fluctuations inmarket value on the unitrust amount. Assets for which a fair market valuecannot be readily ascertained shall be valued using valuation methods as areconsidered reasonable and appropriate by the trustee. Assets, such as aresidence or tangible personal property, used by the trust beneficiary may beexcluded from the fair market value for computing the unitrust amount.

(b)        The percentage tobe used in determining the unitrust amount shall be a reasonable current returnfrom the trust, in any event not less than three percent (3%) nor more thanfive percent (5%), taking into account the intentions of the settlor of thetrust as expressed in the governing instrument, the needs of the beneficiaries,general economic conditions, projected current earnings and appreciation forthe trust, and projected inflation and its impact on the trust.

(c)        Repealed by SessionLaws 2005‑244, s. 4, effective July 30, 2005. See notes for applicabilitylanguage.

(d)        Following theconversion of an income trust to a total return unitrust, 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 thediscretionary 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, as amended from time to time; and

(4)        Shall then considerthe unitrust amount as coming from the principal of the trust. (2003‑232, s. 2; 2005‑244,s. 4; 2007‑106, ss. 48, 49.)

State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-1-104_4

§ 37A‑1‑104.4. Determination of unitrust amount.

(a)        The fair marketvalue of the trust shall be determined at least annually, using a valuationdate selected by the trustee in its discretion. The trustee, in its discretion,may use an average of the fair market value on the same valuation date for thecurrent fiscal year and not more than three preceding fiscal years, if the useof this average appears desirable to reduce the impact of fluctuations inmarket value on the unitrust amount. Assets for which a fair market valuecannot be readily ascertained shall be valued using valuation methods as areconsidered reasonable and appropriate by the trustee. Assets, such as aresidence or tangible personal property, used by the trust beneficiary may beexcluded from the fair market value for computing the unitrust amount.

(b)        The percentage tobe used in determining the unitrust amount shall be a reasonable current returnfrom the trust, in any event not less than three percent (3%) nor more thanfive percent (5%), taking into account the intentions of the settlor of thetrust as expressed in the governing instrument, the needs of the beneficiaries,general economic conditions, projected current earnings and appreciation forthe trust, and projected inflation and its impact on the trust.

(c)        Repealed by SessionLaws 2005‑244, s. 4, effective July 30, 2005. See notes for applicabilitylanguage.

(d)        Following theconversion of an income trust to a total return unitrust, 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 thediscretionary 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, as amended from time to time; and

(4)        Shall then considerthe unitrust amount as coming from the principal of the trust. (2003‑232, s. 2; 2005‑244,s. 4; 2007‑106, ss. 48, 49.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_37A > GS_37A-1-104_4

§ 37A‑1‑104.4. Determination of unitrust amount.

(a)        The fair marketvalue of the trust shall be determined at least annually, using a valuationdate selected by the trustee in its discretion. The trustee, in its discretion,may use an average of the fair market value on the same valuation date for thecurrent fiscal year and not more than three preceding fiscal years, if the useof this average appears desirable to reduce the impact of fluctuations inmarket value on the unitrust amount. Assets for which a fair market valuecannot be readily ascertained shall be valued using valuation methods as areconsidered reasonable and appropriate by the trustee. Assets, such as aresidence or tangible personal property, used by the trust beneficiary may beexcluded from the fair market value for computing the unitrust amount.

(b)        The percentage tobe used in determining the unitrust amount shall be a reasonable current returnfrom the trust, in any event not less than three percent (3%) nor more thanfive percent (5%), taking into account the intentions of the settlor of thetrust as expressed in the governing instrument, the needs of the beneficiaries,general economic conditions, projected current earnings and appreciation forthe trust, and projected inflation and its impact on the trust.

(c)        Repealed by SessionLaws 2005‑244, s. 4, effective July 30, 2005. See notes for applicabilitylanguage.

(d)        Following theconversion of an income trust to a total return unitrust, 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 thediscretionary 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, as amended from time to time; and

(4)        Shall then considerthe unitrust amount as coming from the principal of the trust. (2003‑232, s. 2; 2005‑244,s. 4; 2007‑106, ss. 48, 49.)

Categories