Title 30, TRUSTS AND FIDUCIARIES

Sec. 33. (a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources under this section, the trustee shall allocate them as follows: (1) If received as nominal delay rental or nominal annual rent on a lease, a receipt must be all…

Sec. 34. (a) To the extent that a trustee accounts for receipts from the sale of timber and related products under this section, the trustee shall allocate the net receipts: (1) to income to the extent that the amount of timber removed from the land does not exceed the rate of gr…

Sec. 35. (a) If: (1) a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets; and (2) the amounts that the trustee transfers from principal to …

Sec. 36. (a) As used in this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments that gives a trust the right or obligation to participate in: (1) some or all changes in the price of a tangible or intangible asset…

Sec. 37. (a) As used in this section, "asset backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the o…

Sec. 38. A trustee shall make the following disbursements from income to the extent that they are not disbursements to which section 18(a)(2)(B) or 18(a)(2)(C) of this chapter applies: (1) one-half (1/2) of the regular compensation of the trustee and of any person providing inves…

Sec. 39. (a) A trustee shall make the following disbursements from principal: (1) the remaining one-half (1/2) of the disbursements described in section 38(1) and 38(2) of this chapter; (2) all of the trustee's compensation calculated on principal as a fee for acceptance, distrib…

Sec. 4. As used in this chapter, "income" means money or property that a fiduciary receives as current return from a principal asset. The term includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in sections 21 through …

Sec. 40. (a) As used in this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one (1) year. (b) A trustee may transfer to principal a reasonable amount of the net cas…

Sec. 41. (a) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one (1) or more accounting periods to reimburse principal or to provide a reserve for future principal…

Sec. 42. (a) A tax required to be paid by a trustee based on receipts allocated to income must be paid from income. (b) A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxi…

Sec. 43. (a) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries that arise from: (1) elections and decisions, other than those described in subsection …

Sec. 44. In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. As added by P.L.84-2002, SEC.2.

Sec. 5. As used in this chapter, "income beneficiary" means a person to whom net income of a trust is or may be payable. As added by P.L.84-2002, SEC.2.

Sec. 6. As used in this chapter, "income interest" means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion. As added by P.L.84-2002, SE…

Sec. 7. As used in this chapter, "mandatory income interest" means the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute. As added by P.L.84-2002, SEC.2.

Sec. 8. As used in this chapter, "net income" means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under this chapter to or from income during the period. As added by P.L.84-20…

Sec. 9. As used in this chapter, "person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government; governmental subdivision, agency, or instrumentality; public corporation, or any other legal …

Sec. 1. As used in this chapter, "current valuation year" means the year of the trust for which the unitrust amount is being determined. As added by P.L.3-2003, SEC.2.

Sec. 10. (a) Unless expressly prohibited in the governing trust instrument, and if the trustee would not be prohibited from exercising the power to adjust under IC 30-2-14-15(a) because at least one (1) of the provisions of IC 30-2-14-15(c)(3) through IC 30-2-14-15(c)(7) would be…

Sec. 11. If a trustee: (1) receives an objection under section 10 of this chapter; (2) elects not to proceed under section 10 of this chapter; or (3) is not able to proceed under section 10 of this chapter because the trustee does not have the power to adjust under IC 30-2-14-15(…

Sec. 12. A trust beneficiary described in IC 30-2-14-16(b) may petition the court having jurisdiction of the trust to order the trustee to take an action described in section 9 of this chapter, if the action would not alter any amount in the trust that is permanently set aside fo…

Sec. 13. If the court finds that the conversion, reconversion, or change in the unitrust rate under this chapter will enable the trustee to better carry out: (1) in the case of a trust described in section 2(1) of this chapter, the intent of the settlor or testator and the purpos…

Sec. 14. This section applies if a total return unitrust is reconverted to an income trust. The trustee's release of the trustee's power under IC 30-2-14-15, if it was given at the time the trust was converted to a total return unitrust, is void when the trust is reconverted. As …

Sec. 15. (a) This section applies to a trust described in section 2(1) of this chapter. (b) When a trustee gives notice of a proposed action under section 10(a)(1)(A) of this chapter to convert a trust to a unitrust, the trustee must include the unitrust rate in the notice of pro…

Sec. 15.2. (a) This section applies to a trust described in section 2(2) of this chapter. (b) A trust may have a unitrust rate that represents a reasonable current return from the trust and best serves the purpose of the perpetual care (as defined in IC 23-14-33-30) of the cemete…

Sec. 16. For the first two (2) years of the trust or the first two (2) years after the conversion to a total return unitrust under this chapter, the unitrust amount for a current valuation year of the trust must be the product of the unitrust rate multiplied by the net fair marke…

Sec. 17. Beginning with the third year of the trust, and each year after that year, the unitrust amount for a current valuation year of the trust is the product of the unitrust rate multiplied by the average of the net fair market values of the assets held in the trust on the fir…

Sec. 18. In determining the net fair market value of each asset held in the trust under sections 16 and 17 of this chapter, the value of the following may not be included: (1) Any residential property or tangible personal property that, as of the first business day of the current…

Sec. 19. (a) The trustee may exclude any assets for which the fair market value is not readily determinable from the determination of net fair market value of trust assets. However, the terms of the trust continue to apply to these assets. (b) The trustee may determine any other …

Sec. 2. As used in this chapter, "income trust" means: (1) a trust created by an inter vivos or a testamentary instrument that has terms that describe the amount that may or must be distributed to a beneficiary by referring to the trust's income; or (2) a cemetery perpetual care …

Sec. 20. The unitrust amount may not be reduced for expenses that would be deducted from income if the trust were not a total return unitrust. As added by P.L.3-2003, SEC.2.

Sec. 21. For purposes of section 16 of this chapter, the net fair market values of the assets held in trust on the first business day of a proper valuation year shall be adjusted to reflect any: (1) reduction, in the case of a distribution or payment; or (2) increase, in the case…

Sec. 22. (a) As used in this section, "short year" refers to a part of a calendar year that: (1) begins when the interest of the current beneficiary or class of current beneficiaries begins; or (2) ends when the interest of the current beneficiary or class of beneficiaries ends. …

Sec. 23. (a) This section applies to the following trusts: (1) A trust for which a marital deduction has been taken for federal tax purposes during the lifetime of the spouse for whom the trust was created under Section 2056 or 2523 of the Internal Revenue Code. (2) A trust to wh…

Sec. 24. After the income trust is converted to a total return unitrust under this chapter, both of the following apply: (1) The term "income" in the governing instrument means the unitrust amount plus any income from the trust assets excluded from the determination of net fair m…

Sec. 25. (a) Except as provided in subsection (b), and unless otherwise provided by the governing instrument, the unitrust amount shall be considered to have been paid from net income. The net income of the trust shall be determined as if the trust were not a unitrust. (b) To the…

Sec. 26. (a) A trustee who in good faith acts or fails to act under section 9 of this chapter is not liable to any person affected by the action or inaction, regardless of whether the person: (1) received written notice as provided in section 10 of this chapter; and (2) was under…

Sec. 3. As used in this chapter, "net fair market value" means the fair market value of each asset comprising the trust reduced by the liens, debts, and encumbrances of the trust, regardless of whether the liens, debts, and encumbrances are allocable to a specific asset. As added…

Sec. 4. As used in this chapter, "total return unitrust" means an income trust that has been converted to a total return unitrust in accordance with this chapter. As added by P.L.3-2003, SEC.2.

Sec. 5. As used in this chapter, "trustee" refers to the: (1) trustee of a trust; or (2) if at least two (2) persons are acting as trustee, a majority of the trustees. As added by P.L.3-2003, SEC.2.

Sec. 6. As used in this chapter, "unitrust amount" means an amount computed as a percentage of the fair market value of the trust as set forth in this chapter. As added by P.L.3-2003, SEC.2.

Sec. 7. As used in this chapter, "unitrust rate" means the percentage of the fair market value of the trust that is determined under section 15 of this chapter and used to calculate the unitrust amount. As added by P.L.3-2003, SEC.2.

Sec. 8. As used in this chapter, "year" means a calendar year. As added by P.L.3-2003, SEC.2.

Sec. 9. A trustee may: (1) release the trustee's power to adjust between trust principal and income under IC 30-2-14-15 and convert an income trust to a total return unitrust; (2) reconvert a total return unitrust to an income trust; or (3) change the unitrust rate; if the requir…

Sec. 1. The purpose of this chapter is to provide rules for the valid execution, amendment, and revocation of inter vivos trusts that are prepared and signed electronically. This chapter shall be applied fairly and flexibly so that a settlor whose identity can be verified, who ha…