|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARRIS N. GLENDENING, Governor
|
|
|
|
|
|
Ch. 478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(E) IF AUTHORIZED BY A COURT ORDER, IN ACCORDANCE WITH A PETITION
FILED UNDER § 15-502.3 OF THIS SUBTITLE, THE CONVERTED UNITRUST MAY
PROVIDE THAT:
(1) THE PAYOUT PERCENTAGE IS DIFFERENT THAN 4%;
(2) A DISTRIBUTION OF NET INCOME, AS WOULD BE DETERMINED IF
THE TRUST WERE NOT A UNITRUST, SHALL BE MADE IF IN EXCESS OF THE UNITRUST
DISTRIBUTION AND IF THAT DISTRIBUTION IS NECESSARY TO PRESERVE A TAX
BENEFIT; OR
(3) VALUATION OF THE TRUST'S NET ASSETS SHALL BE AVERAGED OVER
A PERIOD OTHER THAN 3 YEARS.
(F) A TRUSTEE MAY NOT CONVERT A TRUST INTO A UNITRUST UNDER
SUBSECTION (A) OF THIS SECTION IF:
(1) THE CONVERSION WOULD RESULT IN THE DISALLOWANCE OF AN
ESTATE TAX OR GIFT TAX MARITAL DEDUCTION THAT WOULD BE ALLOWED, IN
WHOLE OR IN PART, IF THE TRUSTEE DID NOT HAVE THE POWER TO CONVERT;
(2) PAYMENT OF THE UNITRUST DISTRIBUTION WOULD CHANGE THE
AMOUNT PAYABLE TO A BENEFICIARY AS A FIXED ANNUITY OR A FIXED FRACTION
OF THE VALUE OF THE TRUST ASSETS;
(3) THE UNITRUST DISTRIBUTION WOULD BE MADE FROM ANY AMOUNT
THAT IS PERMANENTLY SET ASIDE FOR CHARITABLE PURPOSES UNDER THE
GOVERNING INSTRUMENT AND FOR WHICH A FEDERAL ESTATE OR GIFT TAX
DEDUCTION HAS BEEN TAKEN, UNLESS BOTH INCOME AND PRINCIPAL ARE SO SET
ASIDE;
(4) POSSESSING OR EXERCISING THE POWER TO CONVERT WOULD
CAUSE AN INDIVIDUAL TO BE TREATED AS THE OWNER OF ALL OR PART OF THE
TRUST FOR FEDERAL INCOME TAX PURPOSES AND THE INDIVIDUAL WOULD NOT BE
TREATED AS THE OWNER IF THE TRUSTEE DID NOT POSSESS THE POWER TO
CONVERT;
(5) POSSESSING OR EXERCISING THE POWER TO CONVERT WOULD
CAUSE ALL OR PART OF THE TRUST ASSETS TO BE SUBJECT TO ESTATE OR GIFT TAX
WITH RESPECT TO AN INDIVIDUAL AND THE ASSETS WOULD NOT BE SUBJECT TO
ESTATE OR GIFT TAX WITH RESPECT TO THE INDIVIDUAL IF THE TRUSTEE DID NOT
POSSESS THE POWER TO CONVERT; OR
(6) THE TRUSTEE IS A BENEFICIARY OF THE TRUST.
(G) (1) IF SUBSECTION (F)(4), (5), OR (6) OF THIS SECTION APPLIES TO A
TRUSTEE AND THERE IS MORE THAN ONE TRUSTEE, A COTRUSTEE TO WHOM THE
PROVISION DOES NOT APPLY MAY CONVERT THE TRUST TO A UNITRUST UNDER
SUBSECTION (A) OF THIS SECTION, UNLESS EXERCISE OF THE POWER BY THE
REMAINING TRUSTEE OR TRUSTEES IS PROHIBITED BY THE GOVERNING
INSTRUMENT.
|
|
|
|
|
|
|
|
|
|
- 3811 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
