75A-5-309. Special tax benefits -- Other rules.
(1) A unitrust policy may: provide methods and standards for: determining the timing of distributions; making distributions in cash or in kind or partly in cash and partly in kind; or correcting an underpayment or overpayment to a beneficiary based on the unitrust amount if there is an error in calculating the unitrust amount; specify sources and the order of sources, including categories of income for federal income tax purposes, from which distributions of a unitrust amount are paid; or provide other standards and rules the fiduciary determines serve the interests of the beneficiaries.
(2) If a trust qualifies for a special tax benefit or a fiduciary is not an independent person: the unitrust rate established under Sectionmay not be less than 3% or more than 5%; 75A-5-306 the only provisions of Sectionthat apply are Subsectionsand (2)(a), (d), (e)(i), and (i); 75A-5-307 75A-5-307(1) the only period that may be used under Sectionis a calendar year under Subsection; and 75A-5-308 75A-5-308(1) the only other provisions of Sectionthat apply are Subsectionsand (c). 75A-5-308 75A-5-308(2)(b)(i)