The unitrust amount is determined as follows:

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1.    For the first three accounting periods of the trust, the unitrust amount for a current valuation year of the trust may not be less than three percent, or more than five percent, by the election of the trustee, the disinterested person, or the court, of the net fair market value of the assets held in the trust on the valuation date of the current valuation year; 2.    Beginning with the fourth accounting period of the trust, the unitrust amount for a current valuation year of the trust may not be less than three percent, or more than five percent, by the election of the trustee, the disinterested person, or the court, of the average of the net fair market value of the assets held in the trust on the valuation date of the current valuation year and the net fair market value of the assets held in the trust on the valuation date of each prior valuation year; 3.    The percentage that may be elected by the trustee, the disinterested person, or the court in determining the unitrust amount must be a reasonable current return from the trust, taking into account the intentions of the settlor as expressed in the governing instrument. However, the election by the trustee, the disinterested person, or the court in determining the unitrust amount may not be less than three percent, or more than five percent; 4.    The unitrust amount for the current valuation year must be proportionately reduced for any distribution, in whole or in part, other than distributions of the unitrust amount, and for any payments of expenses, including debts, disbursements, and taxes, from the trust within a current valuation year which the trustee determines to be material and substantial, and must be proportionately increased for the receipt, other than a receipt that represents a return on investment, of any additional property into the trust within a current valuation year; 5.    In the case of a short accounting period, the trustee shall prorate the unitrust amount on a daily basis; 6.    If the net fair market value of an asset held in the trust has been incorrectly determined either in a current valuation year or in a prior valuation year, the unitrust amount must be increased in the case of an undervaluation, or be decreased in the case of an overvaluation, by an amount equal to the difference between the unitrust amount determined based on the correct valuation of the asset and the unitrust amount originally determined;     7.    In determining the net fair market value of the assets held in trust, the determination may not include the value of residential property or tangible personal property that, as of the first business day of the current valuation year, one or more income beneficiaries of the trust have or had the right to occupy, or have or had the right to possess or control, other than in a capacity as trustee, and instead the right of occupancy or the right of possession or control must be deemed to be the unitrust amount with respect to the residential property or the tangible personal property; or any asset to be distributed outright to a beneficiary during the valuation period under the terms of the trust and the return on investment on that asset, which return on investment must be distributed to the beneficiary.