A unitrust policy shall provide the method for determining the fair market value of an asset for the purpose of determining the unitrust amount, including:
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Terms Used In Utah Code 22-3-307
Appraisal: A determination of property value.
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
the frequency of valuing the asset, which need not require a valuation in every period; and
(b)
the date for valuing the asset in each period that the asset is valued.
(2)
Except as otherwise provided in Subsection 22-3-309(2)(b), a unitrust policy may provide methods for determining the amount of the net fair market value of the trust to take into account in determining the applicable value, including:
(a)
obtaining an appraisal of an asset for which fair market value is not readily available;
(b)
exclusion of specific assets or groups or types of assets;
(c)
other exceptions or modifications of the treatment of specific assets or groups or types of assets;
(d)
identification and treatment of cash or property held for distribution;
(e)
use of:
(i)
an average of fair market values over a stated number of preceding periods; or
(ii)
another mathematical blend of fair market values over a stated number of preceding periods;
(f)
a limit on how much the applicable value of all assets, groups of assets, or individual assets may increase over:
(i)
the corresponding applicable value for the preceding period; or
(ii)
a mathematical blend of applicable values over a stated number of preceding time periods;
(g)
a limit on how much the applicable value of all assets, groups of assets, or individual assets may decrease below:
(i)
the corresponding applicable value for the preceding period; or
(ii)
a mathematical blend of applicable values over a stated number of preceding periods;
(h)
the treatment of accrued income and other features of an asset that affect value; and
(i)
determining the liabilities of the trust, including treatment of liabilities to conform with the treatment of assets under Subsections (2)(a) through (h).
