| (1) |
In the exercise of his powers including the powers granted by this chapter, 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. The word “tax” includes, but is not limited to any federal, state, or local excise, income, gift, estate, or inheritance tax. |
Terms Used In Utah Code 59-18-105
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Donor: The person who makes a gift.
- 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.
- 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.
- 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.
- Person: means :Utah Code 68-3-12.5
- Private foundation trust: means a trust (including a trust described in Section 4947(a)(1)) as defined in Section 509(a). See Utah Code 59-18-102
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Split interest trust: means a trust for individual and charitable beneficiaries that is subject to the provisions of Section 4947(a)(2). See Utah Code 59-18-102
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
- Trust: means an express trust created by a trust instrument, including a will. See Utah Code 59-18-102
- Trustee: means the trustee, trustees, person, or persons possessing a power or powers referred to in this chapter. See Utah Code 59-18-102
- Trustee: A person or institution holding and administering property in trust.
| (2) |
A trustee of a private foundation trust, except as provided in Section 59-18-106, shall make distributions at such time and in such manner as not to subject the trust to tax under Section 4942. |
| (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), in the exercise of his powers, except as provided in Subsection (4) of this section and Section 59-18-106, shall not:
| (a) |
engage in any act of self dealing (as defined in Section 4941(d)); |
| (b) |
retain any excess business holdings (as defined in Section 4943(c)); |
| (c) |
make any investments in such manner as to subject the foundation to tax under Section 4944; and |
| (d) |
make any taxable expenditures (as defined in Section 4945(d)). |
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| (4) |
Subsections (3)(b) and (c) do not apply to a split interest trust if:
| (a) |
all the income interest (and none of the remainder interest) of such trust is devoted solely to one or more of the purposes described in Section 170(c)(2)(B), and all amounts in such trust for which a deduction was allowed under Section 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 have aggregate fair market value not more than 60% of the aggregate fair market value of all amounts in such trust; or |
| (b) |
a deduction was allowed under Section 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 for amounts payable under the terms of such trust to every remainder beneficiary but not to any income beneficiary. |
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Renumbered and Amended by Chapter 2, 1987 General Session
