Michigan Laws 14.275 – Tax exemption, deduction, or credit; distributions; prohibited conduct
Current as of: 2024 | Check for updates
|
Other versions
(1) In the exercise of his powers including the powers granted by this act, a trustee has a duty to act with due regard to his obligation as a fiduciary, including a duty not to exercise any power in such a way as to deprive the trust of an otherwise available tax exemption, deduction or credit for tax purposes or deprive a donor of a trust asset of a tax deduction or credit or operate to impose a tax upon a donor, trust or other person. “Tax” includes, but is not limited to, any federal, state or local excise, income, gift, estate or inheritance tax.
(2) A trustee of a private foundation trust, except as provided in section 7, shall make distributions at such time and in such manner as not to subject the trust to tax under section 4942 of the IRC.
Terms Used In Michigan Laws 14.275
- Donor: The person who makes a gift.
- Fiduciary: A trustee, executor, or administrator.
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- IRC: means the internal revenue code of 1954 as in effect on January 1, 1970. See Michigan Laws 14.272
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Private foundation trust: means a trust, including a trust described in section 4947(a)(1) of the IRC, as defined in section 509(a) of the IRC. See Michigan Laws 14.272
- Split interest trust: means a trust for individual and charitable beneficiaries that is subject to section 4947(a)(2) of the IRC. See Michigan Laws 14.272
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- Trust: means an express trust created by a trust instrument, including a will. See Michigan Laws 14.272
- Trustee: A person or institution holding and administering property in trust.
- Trustee: means the trustee or person possessing a power referred to in this act. See Michigan Laws 14.272
(3) A trustee of a private foundation trust or a split interest trust, to the extent that the split interest trust is subject to the provisions of section 4947(a)(2) of the IRC, in the exercise of his powers, except as provided in section 6 and 7, shall not:
(a) Engage in any act of self-dealing as defined in section 4941(d) of the IRC.
(b) Retain any excess business holdings as defined in section 4943(c) of the IRC.
(c) Make any investments in such manner as to subject the foundation to tax under section 4944 of the IRC.
(d) Make any taxable expenditures as defined in section 4945(d) of the IRC.