Title 59 — Trusts
28 chapters · 193 sections in this title.
N.D.C.C. § 59-16.3-01 Definitions
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For purposes of this chapter, unless the context otherwise requires: 1. "Disinterested person" means a person who is not a related or subordinate party, as defined in section 672(c) of the Internal Revenue Code [26 U.S.C. 1, et seq.], with respect to the person then acting as tru…
N.D.C.C. § 59-16.3-02 Trustee's authority to convert income trust - Conditions
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A trustee, other than an interested trustee, or if two or more persons are acting as trustee, a majority of the trustees who are not an interested trustee, and without the approval of a court, may convert an income trust to a total return unitrust, reconvert a total return unitru…
N.D.C.C. § 59-16.3-03 Interested trustee's authority over actions enumerated in chapter 59-16.3
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If there is not a trustee of the trust other than an interested trustee, the interested trustee, or if two or more persons are acting as trustee and are interested trustees, a majority of those interested trustees, without the approval of a court, may take such action as provided…
N.D.C.C. § 59-16.3-04 Trustee may petition court - Appointment of disinterested person
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If a trustee desires to convert an income trust to a total return unitrust, reconvert a total return unitrust to an income trust, or change the percentage used to calculate the unitrust amount and the method used to determine the fair market value of the trust, but does not have …
N.D.C.C. § 59-16.3-05 Annual valuation of trust required
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The fair market value of the trust must be determined at least annually, using the valuation date, or dates, or averages of valuation dates as are deemed appropriate. Assets for which a fair market value cannot be readily ascertained must be valued using valuation methods that ar…
N.D.C.C. § 59-16.3-06 Calculation of unitrust amount
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The unitrust amount is determined as follows: 1. For the first three accounting periods of the trust, the unitrust amount for a current valuation year of the trust may not be less than three percent, or more than five percent, by the election of the trustee, the disinterested per…
N.D.C.C. § 59-16.3-07 Unitrust amount as net income
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Following the conversion of an income trust to a total return unitrust, the trustee: 1. Shall treat the unitrust amount as net income of the trust for purposes of determining the amount available, from time to time, for distributions from the trust; 2. May allocate to trust incom…
N.D.C.C. § 59-16.3-08 Administration of total return unitrust authority - Authority of trustee
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The trustee, in administering a total return unitrust, may determine: 1. The effective date of the conversion; 2. The timing of distributions; 3. Whether distributions are to be made in cash, in kind, or partly in cash and partly in kind; 4. Which assets are to be excluded in det…
N.D.C.C. § 59-16.3-09 Distributions of principal not affected by conversion
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Conversion to a total return unitrust under this chapter does not affect any other provisions of the governing instrument, if any, regarding distributions of principal. 59-16.3-10. Spouse may compel reconversion to income trust for certain trusts - Written instrument required. In…
N.D.C.C. § 59-16.3-11 Applicability of chapter
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This chapter must be construed as pertaining to the administration of a trust and must be available to a trust that is administered in the state under state law unless: 1. The governing instrument reflects an intention that the current beneficiary or beneficiaries are to receive …
N.D.C.C. § 59-16.3-12 Trustee acting in good faith not liable - Remedy
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A trustee or disinterested person who in good faith takes or fails to take any action under this chapter is not liable to any person affected by that action or inaction, regardless of whether the person received written notice as provided in this chapter and regardless of whether…
N.D.C.C. § 59-16.3-13 No duty to act created
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This chapter does not create a duty to take action under this chapter, and a trustee is not liable for not considering whether to take action or for choosing not to take action.
N.D.C.C. § 59-16.3-14 Chapter not applicable to charitable remainder unitrust
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This chapter does not apply to a charitable remainder unitrust as defined by section 664(d) of the Internal Revenue Code.