Special tax benefits -- Other rules.

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  • (1) A unitrust policy may:
    • (a) provide methods and standards for:
      • (i) determining the timing of distributions;
      • (ii) making distributions in cash or in kind or partly in cash and partly in kind; or
      • (iii) correcting an underpayment or overpayment to a beneficiary based on the unitrust amount if there is an error in calculating the unitrust amount;
    • (b) specify sources and the order of sources, including categories of income for federal income tax purposes, from which distributions of a unitrust amount are paid; or
    • (c) provide other standards and rules the fiduciary determines serve the interests of the beneficiaries.
  • (2) If a trust qualifies for a special tax benefit or a fiduciary is not an independent person:
    • (a) the unitrust rate established under Section 22-3-306 may not be less than 3% or more than 5%;
    • (b) the only provisions of Section 22-3-307 that apply are Subsections 22-3-307(1) and (2)(a), (d), (e)(i), and (i);
    • (c) the only period that may be used under Section 22-3-308 is a calendar year under Subsection 22-3-308(1); and
    • (d) the only other provisions of Section 22-3-308 that apply are Subsection 22-3-308(2)(b)(i) and (c).




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