The definitions in this section apply to Sections 62-7-904C through 62-7-904P.
(1) "Code" means the Internal Revenue Code of 1986, as amended from time to time, and any statutory enactment successor to the Code; reference to a specific section of the code in Sections 62-7-904B through 62-7-904P are considered a reference also to any successor provision dealing with the subject matter of that section of the Code.
(2) "Disinterested person" means a person who is not a related or subordinate party with respect to the person then acting as trustee of the trust and excludes the settlor of the trust and any interested trustee.
(3) "Express total return unitrust" means a trust created by the terms of a governing instrument requiring the distribution at least annually of a unitrust amount equal to a fixed percentage of not less than three percent nor more than five percent a year of the net fair market value of the amounts of the trust, valued at least annually.
(4) "Income trust" means a trust, created by either an inter vivos or a testamentary instrument, which directs or permits the trustee to distribute the net income of the trust to one or more persons, either in fixed proportions or in amounts or proportions determined by the trustee, and regardless of whether the trust directs or permits the trustee to distribute principal of the trust to one or more of those persons.
(5) "Interested distributee" means a living beneficiary who is a distributee or permissible distributee of trust income or principal who has the power to remove the existing trustee and designate as successor a person who may be a related or subordinate party with respect to that distributee.
(6) "Interested trustee" means any of the following:
(a) an individual trustee who is a qualified beneficiary;
(b) a trustee who may be removed and replaced by an interested distributee;
(c) an individual trustee whose legal obligation to support a beneficiary may be satisfied by distributions of income and principal of the trust.
(7) "Legal disability" means a person under a legal disability who is a minor, an incompetent or incapacitated person, or an unborn individual, or whose identity or location is unknown.
(8) "Qualified beneficiary" means a qualified beneficiary as defined in Section 62-7-103(12).
(9) "Related or subordinate party" means a related or subordinate party as defined in Section 672(c) of the Code.
(10) "Representative" means a person who may represent and bind another as provided in Part 3 of this article, the provisions of which apply for purposes of this section and Sections 62-7-904C through 62-7-904P.
(11) "Settlor" means an individual, including a testator, who creates a trust.
(12) "Total return unitrust" means an income trust that has been converted under and meets the provisions of this section and Section 62-7-904C through 62-7-904P.
(13) "Treasury regulations" means the regulations, rulings, procedures, notices, or other administrative pronouncements issued by the Internal Revenue Service, as amended from time to time.
(14) "Trustee" means a person acting as trustee of the trust, except as otherwise expressly provided in this section and Sections 62-7-904C through 62-7-904P whether acting in that person's discretion or on the direction of one or more persons acting in a fiduciary capacity.
(15) "Unitrust amount" means an amount computed as a percentage of the fair market value of the assets of the trust.
HISTORY: 2013 Act No. 100, Section 2, eff January 1, 2014.