§ 36C-4A-2. Reformation of charitable remainder trust.
§ 36C‑4A‑2. Reformation of charitable remainder trust.
If a federal estate taxdeduction is not allowable at the time of a decedent's death because of thefailure of an interest in property that passes from the decedent under a willor trust to a person, or for a use, described in section 2055(a) of theInternal Revenue Code, to meet the requirements of subsections 2055(e)(2)(A) or(B) of the Internal Revenue Code, then in order that the deduction shallnevertheless be allowable under section 2055(e)(3) of the Internal RevenueCode, the court may, on application of any trustee or interested party witheither (i) the written consent of the qualified beneficiaries, or (ii) afinding that the interest of those beneficiaries is substantially preserved,order an amendment to the trust so that the remainder interest is in a trustthat is a charitable remainder annuity trust, a charitable remainder unitrust(as those terms are described in section 664 of the Internal Revenue Code), ora pooled income fund (as that term is described in section 642(c)(5) of theInternal Revenue Code), or so that any other interest of a charitablebeneficiary is in the form of a guaranteed annuity or is a fixed percentagedistributed yearly of the fair market value of the property (to be determinedyearly), in accordance with section 2055(e)(2)(B) of the Internal Revenue Code.In every proceeding under this section, the Attorney General shall be notified,and given an opportunity to be heard. (1971, c. 1136, s. 4; 1977, c. 502, s. 2; 1981 (Reg.Sess., 1982), c. 1210, ss. 1‑3; 2005‑192, s. 2.)