(1) A unitrust policy may:

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Terms Used In Utah Code 75A-5-309

  • Fiduciary: A trustee, executor, or administrator.
  • Fiduciary: includes :
         (8)(a) a trustee, trust director as defined in Section 75-12-102, personal representative, life tenant, holder of a term interest, and person acting under a delegation from a fiduciary;
         (8)(b) a person that holds property for a successor beneficiary whose interest may be affected by an allocation of receipts and expenditures between income and principal; and
         (8)(c) if there are two or more co-fiduciaries, all co-fiduciaries acting under the terms of the trust and applicable law. See Utah Code 75A-5-102
  • Income: includes a part of receipts from a sale, exchange, or liquidation of a principal asset to the extent provided in Part 4, Allocation of Receipts. See Utah Code 75A-5-102
  • Independent person: means a person that is not:
         (11)(a) for a trust:
              (11)(a)(i) a qualified beneficiary as determined under Section 75-7-103;
              (11)(a)(ii) a settlor of the trust; or
              (11)(a)(iii) an individual whose legal obligation to support a beneficiary may be satisfied by a distribution from the trust;
         (11)(b) for an estate, a beneficiary;
         (11)(c) a spouse, parent, brother, sister, or issue of an individual described in Subsection (11)(a) or (b);
         (11)(d) a corporation, partnership, limited liability company, or other entity in which persons described in Subsections (11)(a) through (c), in the aggregate, have voting control; or
         (11)(e) an employee of a person described in Subsection (11)(a), (b), (c), or (d). See Utah Code 75A-5-102
  • Special tax benefit: means :
         (19)(a) exclusion of a transfer to a trust from gifts described in Section 2503(b) of the Internal Revenue Code because of the qualification of an income interest in the trust as a present interest in property;
         (19)(b) status as a qualified subchapter S trust described in Section 1361(d)(3) of the Internal Revenue Code at a time the trust holds stock of an S corporation described in Section 1361(a)(1) of the Internal Revenue Code;
         (19)(c) an estate or gift tax marital deduction for a transfer to a trust under Section 2056 or 2523 of the Internal Revenue Code that depends or depended in whole or in part on the right of the settlor's spouse to receive the net income of the trust;
         (19)(d) exemption in whole or in part of a trust from the federal generation-skipping transfer tax imposed by Section 2601 of the Internal Revenue Code because the trust was irrevocable on September 25, 1985, if there is any possibility that:
              (19)(d)(i) a taxable distribution, as defined in Section 2612(b) of the Internal Revenue Code, could be made from the trust; or
              (19)(d)(ii) a taxable termination, as defined in Section 2612(a) of the Internal Revenue Code, could occur with respect to the trust; or
         (19)(e) an inclusion ratio, as defined in Section 2642(a) of the Internal Revenue Code, of the trust which is less than one, if there is any possibility that:
              (19)(e)(i) a taxable distribution, as defined in Section 2612(b) of the Internal Revenue Code, could be made from the trust; or
              (19)(e)(ii) a taxable termination, as defined in Section 2612(a) of the Internal Revenue Code, could occur with respect to the trust. See Utah Code 75A-5-102
  • Trust: includes :
              (23)(a)(i) an express trust, private or charitable, with additions to the trust, wherever and however created; and
              (23)(a)(ii) a trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust. See Utah Code 75A-5-102
  • Unitrust: includes an express unitrust. See Utah Code 75A-5-301
  • Unitrust amount: means :
         (6)(a) an amount computed by multiplying a determined value of a trust by a determined percentage; and
         (6)(b) for a unitrust administered under a unitrust policy, the applicable value multiplied by the unitrust rate. See Utah Code 75A-5-301
  • Unitrust rate: means the rate used to compute the unitrust amount under Subsection (6) for a unitrust administered under a unitrust policy. See Utah Code 75A-5-301
     (1)(a) provide methods and standards for:

          (1)(a)(i) determining the timing of distributions;
          (1)(a)(ii) making distributions in cash or in kind or partly in cash and partly in kind; or
          (1)(a)(iii) correcting an underpayment or overpayment to a beneficiary based on the unitrust amount if there is an error in calculating the unitrust amount;
     (1)(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
     (1)(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:

     (2)(a) the unitrust rate established under Section 75A-5-306 may not be less than 3% or more than 5%;
     (2)(b) the only provisions of Section 75A-5-307 that apply are Subsections 75A-5-307(1) and (2)(a), (d), (e)(i), and (i);
     (2)(c) the only period that may be used under Section 75A-5-308 is a calendar year under Subsection 75A-5-308(1); and
     (2)(d) the only other provisions of Section 75A-5-308 that apply are Subsections 75A-5-308(2)(b)(i) and (c).
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