§ 11-2.4 Optional unitrust provision\n (a) Unless the terms of the trust provide otherwise, the net income of\nany trust to which this section applies shall mean the unitrust amount\nas determined hereunder.\n (b) Unitrust amount.\n (1) For the first year of the trust as a unitrust, including a short\nyear if applicable, the "unitrust amount" for the year shall mean an\namount equal to four percent of the net fair market values of the assets\nheld in the trust at the beginning of the first business day of the\ncurrent valuation year.\n (2) For the second year of a trust as a unitrust, including a first\nshort year if applicable, the "unitrust amount" for the year shall mean\nan amount equal to four percent multiplied by a fraction, the numerator\nof which shall be the sum of (A) the net fair market values of the\nassets held in the trust at the beginning of the first business day of\nthe current valuation year and (B) the net fair market values of the\nassets held in the trust at the beginning of the first business day of\nthe prior valuation year, and the denominator of which shall be two.\n (3) Commencing with the third year of a trust as a unitrust, including\na first short year if applicable, the "unitrust amount" for a current\nvaluation year of the trust shall mean an amount equal to four percent\nmultiplied by a fraction, the numerator of which shall be the sum of (A)\nthe net fair market values of the assets held in the trust at the\nbeginning of the first business day of the current valuation year and\n(B) the net fair market values of the assets held in the trust at the\nbeginning of the first business day of each prior valuation year, and\nthe denominator of which shall be three.\n (4) The unitrust amount for the current valuation year as computed in\naccordance with subparagraph (b)(1), (2) or (3), as adjusted in\naccordance with this subparagraph, shall be proportionately reduced for\nany corpus distributions to beneficiaries mandated by the terms of the\ntrust, in whole or in part (other than distributions of the unitrust\namount), and shall be proportionately increased for the receipt, other\nthan a receipt that represents a return on investment, of any additional\ncorpus into the trust within a current valuation year.\n (5) For purposes of clause (b)(2)(B), the net fair market values of\nthe assets held in the trust at the beginning of the first business day\nof a prior valuation year shall be adjusted to reflect any distributions\nto beneficiaries mandated by the terms of the trust, in whole or in part\n(other than distributions of the unitrust amount), or receipts (other\nthan receipts that represent a return on investment) of any additional\nprincipal into the trust, which have occurred after the first day of\nsuch prior valuation year and by the close of the first day of the\ncurrent valuation year, as if the distribution or receipt had occurred\non the first day of such prior valuation year.\n (6) In the case of a short year, the trustee shall prorate the\nunitrust amount on a daily basis. The trustee shall prorate any\nadjustment under subparagraph (b)(4) on a daily basis.\n (7) In the case where the unitrust amount has been incorrectly\ndetermined either in a current valuation year or in a prior valuation\nyear, then within a reasonable time (not to exceed eighteen months)\nafter the error was made, the trustee shall make any non-material\nadjustments and pay to the underpaid beneficiary (in case of\nnon-material underpayment) or shall recover from the overpaid\nbeneficiary (in case of non-material overpayment) an amount equal to the\ndifference between the unitrust amount properly payable and any amount\nactually paid for any completed valuation year of the trust and shall\nproperly adjust the unitrust amount for the current valuation year if\naffected non-materially by prior incorrect determination of a unitrust\namount. A material correction shall require approval of the surrogate if\napplied
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.