§ 55-544.20. Prohibitions as to trust which is deemed a split-interest trust.
Every trust which is a split-interest trust (as described in § 4947 (a) (2)of the Internal Revenue Code), unless its governing instrument expresslyincludes specific provisions to the contrary, shall not engage in any act ofself-dealing (as defined in § 4941 (d) of the Internal Revenue Code), retainany excess business holdings (as defined in § 4943 (c) of the InternalRevenue Code) which would give rise to liability for the tax imposed by §4943 (a) of the Internal Revenue Code, make any investments in such manner asto give rise to liability for the tax imposed by § 4944 of the InternalRevenue Code, or make any taxable expenditures (as defined in § 4945 (d) ofthe Internal Revenue Code). This paragraph shall not apply with respect to:
1. Any amounts payable under the terms of such trust to income beneficiaries,unless a deduction was allowed under § 170 (f) (2) (B), 2055 (e) (2) (B), or2522 (c) (2) (B) of the Internal Revenue Code;
2. Any amounts in trust other than amounts for which a deduction was allowedunder § 170, 545 (b) (2), 556 (b) (2), 642 (c), 2055, 2106 (a) (2), or 2522of the Internal Revenue Code, if such other amounts are segregated fromamounts for which no deduction was allowable; or
3. Any amounts transferred in trust before May 27, 1969.
§ 55-544.20. Prohibitions as to trust which is deemed a split-interest trust.
Every trust which is a split-interest trust (as described in § 4947 (a) (2)of the Internal Revenue Code), unless its governing instrument expresslyincludes specific provisions to the contrary, shall not engage in any act ofself-dealing (as defined in § 4941 (d) of the Internal Revenue Code), retainany excess business holdings (as defined in § 4943 (c) of the InternalRevenue Code) which would give rise to liability for the tax imposed by §4943 (a) of the Internal Revenue Code, make any investments in such manner asto give rise to liability for the tax imposed by § 4944 of the InternalRevenue Code, or make any taxable expenditures (as defined in § 4945 (d) ofthe Internal Revenue Code). This paragraph shall not apply with respect to:
1. Any amounts payable under the terms of such trust to income beneficiaries,unless a deduction was allowed under § 170 (f) (2) (B), 2055 (e) (2) (B), or2522 (c) (2) (B) of the Internal Revenue Code;
2. Any amounts in trust other than amounts for which a deduction was allowedunder § 170, 545 (b) (2), 556 (b) (2), 642 (c), 2055, 2106 (a) (2), or 2522of the Internal Revenue Code, if such other amounts are segregated fromamounts for which no deduction was allowable; or
3. Any amounts transferred in trust before May 27, 1969.
§ 55-544.20. Prohibitions as to trust which is deemed a split-interest trust.
Every trust which is a split-interest trust (as described in § 4947 (a) (2)of the Internal Revenue Code), unless its governing instrument expresslyincludes specific provisions to the contrary, shall not engage in any act ofself-dealing (as defined in § 4941 (d) of the Internal Revenue Code), retainany excess business holdings (as defined in § 4943 (c) of the InternalRevenue Code) which would give rise to liability for the tax imposed by §4943 (a) of the Internal Revenue Code, make any investments in such manner asto give rise to liability for the tax imposed by § 4944 of the InternalRevenue Code, or make any taxable expenditures (as defined in § 4945 (d) ofthe Internal Revenue Code). This paragraph shall not apply with respect to:
1. Any amounts payable under the terms of such trust to income beneficiaries,unless a deduction was allowed under § 170 (f) (2) (B), 2055 (e) (2) (B), or2522 (c) (2) (B) of the Internal Revenue Code;
2. Any amounts in trust other than amounts for which a deduction was allowedunder § 170, 545 (b) (2), 556 (b) (2), 642 (c), 2055, 2106 (a) (2), or 2522of the Internal Revenue Code, if such other amounts are segregated fromamounts for which no deduction was allowable; or
3. Any amounts transferred in trust before May 27, 1969.
