Prohibited Acts

1. Law
2. Tennessee Code
3. Fiduciaries and Trust Estates
4. Administration of Private Foundations, Charitable Trusts or Split-Interest Trusts
5. Prohibited Acts

In the administration of any trust that is a “private foundation,” as defined in § 509 of the Internal Revenue Code of 1954 (26 U.S.C. §  509), a “charitable trust,” as defined in § 4947(a)(1) of the Internal Revenue Code of 1954 (26 U.S.C. §  4947(a)(1)), or a “split-interest trust,” as defined in § 4947(a)(2) of the Internal Revenue Code of 1954  (26 U.S.C. §  4947(a)(2)), the following acts are prohibited:

1. Engaging in any act of self-dealing, as defined in § 4941(d) of the Internal Revenue Code of 1954  (26 U.S.C. §  4941(d)), that would give rise to any liability for the tax imposed by § 4941(a) of the Internal Revenue Code of 1954 (26 U.S.C. §  4941(a));
2. Retaining any excess business holdings (as defined in § 4943(c) of the Internal Revenue Code of 1954 26 U.S.C. §  4943(c)),  that would give rise to any liability for the tax imposed by § 4943(a) of the Internal Revenue Code of 1954 (26 U.S.C. §  4943(a));
3. Making any investments that would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of § 4944 of the Internal Revenue Code of 1954 (26 U.S.C. §  4944), so as to give rise to any liability for the tax imposed by § 4944(a) of the Internal Revenue Code of 1954 (26 U.S.C. §  4944(a)); or
4. Making any taxable expenditures (as defined in § 4945(d) of the Internal Revenue Code of 1954 (26 U.S.C. §  4945(d)), that would give rise to any liability for the tax imposed by § 4945(a) of the Internal Revenue Code of 1954 (26 U.S.C. §  4945(a)); provided, that this section does not apply either to those split-interest trusts or to amounts of those split-interest trusts that are not subject to the prohibitions applicable to private foundations by reason of § 4947 of the Internal Revenue Code of 1954 (26 U.S.C. §  4947).

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