§ 28-77-302 — Application - Duties and remedies

(a) Except as otherwise provided in subsection (b), this subchapter applies to: (1) an income trust, unless the terms of the trust expressly prohibit use of this subchapter by a specific reference to this subchapter or an explicit expression of intent that net income not be calculated as a unitrust amount; and (2) an express unitrust, except to the extent the terms of the trust explicitly: (A) prohibit use of this subchapter by a specific reference to this subchapter; (B) prohibit conversion to an income trust; or (C) limit changes to the method of calculating the unitrust amount. (b) This subchapter does not apply to a trust described in Section 170(f)(2)(B), 642(c)(5), 664(d), 2702(a)(3)(A)(ii) or (iii), or 2702(b) of the Internal Revenue Code of 1986, as amended, 26 U.S.C. Section 170(f)(2)(B) , 642(c)(5) , 664(d) , 2702(a)(3)(A)(ii) or (iii) , or 2702(b) , as amended. (c) An income trust to which this subchapter applies under subsection (a)(1) may be converted to a unitrust under this subchapter regardless of the terms of the trust concerning distributions. Conversion to a unitrust under this subchapter does not affect other terms of the trust concerning distributions of income or principal. (d) This subchapter applies to an estate only to the extent a trust is a beneficiary of the estate. To the extent of the trust's interest in the estate, the estate may be administered as a unitrust, the administration of the estate as a unitrust may be discontinued, or the percentage or method used to calculate the unitrust amount may be changed, in the same manner as for a trust under this subchapter. (e) This subchapter does not create a duty to take or consider action under this subchapter or to inform a beneficiary about the applicability of this subchapter. (f) A fiduciary that in good faith takes or fails to take an action under this subchapter is not liable to a person affected by the action or inaction.

Legislative History

Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.