59-20 Foundations and Charitable and Split-Interest Trusts
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<![CDATA[CHAPTER 59-20FOUNDATIONS AND CHARITABLE AND SPLIT-INTEREST TRUSTS59-20-01. Private foundations - Charitable trusts - Split-interest trusts.1.Any will or trust instrument creating a trust that is a "private foundation", as defined<br>in section 509(a) of the Internal Revenue Code of 1954, or a "charitable trust", as<br>defined in section 4947(a)(1) of the Internal Revenue Code of 1954, or a<br>"split-interest trust", as defined in section 4947(a)(2) of the Internal Revenue Code of<br>1954, and any other instrument governing the trustee of any such trust, or the use,<br>retention, or disposition of any of the income or property of such trust, may be<br>deemed to have incorporated within the will, trust instrument, or other governing<br>instrument, with the same effect as though such language were included in the will,<br>trust instrument, or other governing instrument, the following provisions with respect<br>to the trust and the trustee thereof, and, except as the contrary is provided in<br>subsection 2, such provisions govern the administration and distribution of any such<br>trust, irrespective of any provisions of any applicable will, trust instrument, or other<br>governing instrument, statute, or law of this state to the contrary:a.The trustee shall distribute for each taxable year of the trust amounts at least<br>sufficient to avoid liability for the tax imposed by section 4942(a) of the Internal<br>Revenue Code of 1954, as now enacted or as hereafter amended.b.The trustee may not engage in any act of "self-dealing", as defined in section<br>4941(d) of the Internal Revenue Code of 1954, which would give rise to any<br>liability for the tax imposed by section 4941(a) of the Internal Revenue Code of<br>1954.c.The trustee may not retain any "excess business holdings", as defined in<br>section 4943(c) of the Internal Revenue Code of 1954, which would give rise to<br>any liability for the tax imposed by section 4943(a) of the Internal Revenue<br>Code of 1954.d.The trustee may not make any investments that would jeopardize the carrying<br>out of any of the exempt purposes of the trust, within the meaning of section<br>4944 of the Internal Revenue Code of 1954, so as to give rise to any liability for<br>the tax imposed by section 4944(a) of the Internal Revenue Code of 1954.e.The trustee may not make any "taxable expenditure", as defined in section<br>4945(d) of the Internal Revenue Code of 1954, which would give rise to any<br>liability for the tax imposed by section 4945(a) of the Internal Revenue Code of<br>1954.2.Subsection 1 does not apply to the extent that a court of competent jurisdiction<br>determines that application would be contrary to the terms of the will, trust<br>instrument, or other governing instrument described in subsection 1 and that such<br>will, trust instrument, or other governing instrument may not be changed to conform<br>to subsection 1.3.As used in this section, "trustee" means a corporation, individual, or other legal entity<br>acting as an original, added, or successor trustee of a testamentary or inter vivos<br>trust estate. Any reference to a particular section of the Internal Revenue Code of<br>1954 includes, as now enacted or as hereafter amended, such section and any<br>provision of federal law as is or may hereafter be applicable, cognate to such<br>section.4.This section does not impair the rights and powers of the attorney general or the<br>courts of this state with respect to any trust.Page No. 1Document Outlinechapter 59-20 foundations and charitable and split-interest trusts]]>