§ 59-04.2-30 — Certain charitable remainder unitrusts

North Dakota § 59-04.2-30

• Jurisdiction: North Dakota
• Title 59: Trusts, Uses, and Powers
• Ch. 59-04.2: Uniform Principal and Income Act (1997)

Text

1. Notwithstanding any other provision of this chapter, unless the trust instrument directs
otherwise, an increase in the value of the obligations described in this subsection
owned by a charitable remainder unitrust of the type authorized in section 664(d)(3) of
the Internal Revenue Code [26 U.S.C. 664(d)(3)] or its successor provisions is
distributable as income when it becomes available for distribution:
a. A zero coupon bond;
b. An annuity contract before annuitization;
c. A life insurance contract before the death of the insured;
d. An interest in a common trust fund as defined in section 584 of the Internal
Revenue Code [26 U.S.C. 584] or its successor provisions;
e. An interest in a partnership as defined in section 7701 of the Internal Revenue
Code [26 U.S.C. 7701] or its successor provisions; and
f. Any other obligation for the payment of money that is payable at a future time in
accordance with a fixed, variable, or discretionary schedule of appreciation in
excess of the price at which it was issued.
2. The increase in value of the obligations described in subsection 1 is distributable to the
beneficiary who was the income beneficiary at the time of the increase.
3. For purposes of this section, the increase in value of an obligation described in
subsection 1 is available for distribution only when the trustee receives cash on
account of the obligation. If the obligation is surrendered or liquidated partially, the
cash available must be attributed first to the increase.