West Virginia Code 31I-1-9 – Limitation on powers
(a) In the exercise of any power held by a private trust company or licensed private trust company in its capacity as a fiduciary, the private trust company or licensed private trust company shall have a duty not to exercise any power in such a way as to deprive the estate, trust, or other entity for which it acts as a fiduciary of an otherwise available tax exemption, deduction, or credit for tax purposes, or deprive a donor of trust assets of a tax exemption, deduction, or credit or operate to impose a tax upon a donor or other person as owner of any portion of the estate, trust, or otherwise.
Terms Used In West Virginia Code 31I-1-9
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Donor: The person who makes a gift.
- Family: means a designated relative and family members of that designated relative. See West Virginia Code 31I-1-3
- Family member: means a designated relative and:
(A) Any individual within: (i) the fifth degree of lineal kinship to a designated relative of a private trust company, or the sixth degree of lineal kinship to a designated relative of a licensed private trust company, or (ii) the seventh degree of collateral kinship to a designated relative of a private trust company, or the ninth degree of collateral kinship to a designated relative of a licensed private trust company. See West Virginia Code 31I-1-3
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: means executor, administrator, conservator, guardian, committee, or trustee. See West Virginia Code 31I-1-3
- Licensed private trust company: means a private trust company that operates in accordance with this article and has been issued a license that has not been revoked or suspended by the State Auditor. See West Virginia Code 31I-1-3
- 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 trust company: means a corporation or limited liability company that:
(A) Is exclusively owned by one or more family members. See West Virginia Code 31I-1-3
- Tax: includes , but is not limited to, federal, state, or local income, gift, estate, generation-skipping transfer, or inheritance tax. See West Virginia Code 31I-1-3
(b) Without limitation to subsection (a) of this section, no family member who is a stockholder or member or who otherwise holds an equity interest in, or is serving as a director, officer, manager, or employee of, a private trust company or licensed private trust company shall participate in or otherwise have a voice in any discretionary decision by the private trust company or licensed private trust company to distribute income or principal of any trust in order to discharge a legal obligation of a family member or for a family member’s pecuniary benefit, unless:
(1) The exercise of the discretion is limited by an ascertainable standard relating to the health, education, support, or maintenance of that family member;
(2) The distribution is necessary for that family member’s support, health, or education; or
(3) The instrument governing the administration of that trust clearly so provides.