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H.B. 881
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VETOES
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(I) TO THE EXTENT NET INCOME IS INSUFFICIENT, THE UNITRUST
DISTRIBUTION SHALL BE PAID FROM NET REALIZED SHORT-TERM CAPITAL GAINS;
(II) TO THE EXTENT INCOME AND NET REALIZED SHORT-TERM
CAPITAL GAINS ARE INSUFFICIENT, THE UNITRUST DISTRIBUTION SHALL BE PAID
FROM NET REALIZED LONG-TERM CAPITAL GAINS; AND
(III) TO THE EXTENT INCOME AND NET REALIZED SHORT-TERM AND
LONG-TERM CAPITAL GAINS ARE INSUFFICIENT, THE UNITRUST DISTRIBUTION
SHALL BE PAID FROM THE PRINCIPAL OF THE TRUST.
(D) THE TRUSTEE SHALL DETERMINE:
(1) THE EFFECT OF OTHER PAYMENTS FROM OR CONTRIBUTIONS TO
THE TRUST ON THE TRUST'S VALUATION;
(2) HOW FREQUENTLY TO VALUE NONLIQUID ASSETS AND WHETHER TO
ESTIMATE THEIR VALUE; AND
(3) WHETHER TO OMIT FROM THE CALCULATIONS TRUST PROPERTY
OCCUPIED OR POSSESSED BY A BENEFICIARY
(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;
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- 5250 -
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