N.Y. EPT Law § 8-1.8 — New York Code / Act EPT / Article 8 / Part 1 / Section 8-1.8
Private foundations: administration of certain trusts as defined
Status: in_force

§ 8-1.8 Private foundations: administration of certain trusts as defined\n          in the United States internal revenue code of 1954\n  (a) For purposes of this section, a "trust" means a private foundation\nas defined in section 509 of the United States Internal Revenue Code of\n1986 ("code") including a private foundation charitable trust as defined\nin section 4947(a)(1) of the code, or a split-interest trust as defined\nin section 4947(a)(2) of the code, whether heretofore or hereafter\ncreated which is administered by a trustee described in subparagraph\n(a)(1) of section 8-1.4. The administration of a trust, as herein\ndefined, is subject to the following provisions:\n  (1) The trust shall distribute for each taxable year such amounts at\nsuch time and in such manner as sufficient for such trust to avoid\nliability for any tax imposed on undistributed income under section 4942\nof the code.\n  (2) The trust shall not engage in any act of self-dealing which would\nresult in the taxation of any amount involved with respect to any such\nact of self-dealing under section 4941 of the code.\n  (3) The trust shall not retain any excess business holdings which\nwould result in the taxation of any such excess business holdings under\nsection 4943 of the code unless the trust is exempt from section 4943 of\nthe code pursuant to section 4947(b)(3)(A) or (B) of the code.\n  (4) The trust shall not make any investments in such a manner as to\njeopardize the carrying out of any such trust's exempt purposes which\nwould result in the taxation of any such investments under section 4944\nof the code unless the trust is exempt from section 4944 of the code\npursuant to section 4947(b)(3)(A) or (B) of the code.\n  (5) The trust shall not make any taxable expenditures which would\nresult in the liability of the trust for any tax imposed on any such\ntaxable expenditures under section 4945 of the code.\n  Except as provided in paragraph (b), this paragraph applies\nnotwithstanding any provision of the governing instrument of a trust.\n  (b) Paragraph (a) shall not apply with respect to assets transferred\nin trust prior to the effective date of this section to the extent that\nit conflicts with any mandatory direction in the governing instrument of\nthe trust unless such conflicting direction is removed as impracticable\nunder this article or in any other manner provided by law. The absence\nof a specific provision in the governing instrument of the trust for the\ncurrent use of the principal of the fund, or the presence in such an\ninstrument of a provision, as to the principal of a fund, limited to the\nprincipal's being held, invested and reinvested, is not such a\nconflicting mandatory direction.\n  (b-1) A trust, as defined in paragraph (a) of this section, required\nby section 6104(d) of the code to make available for public inspection\nits annual return shall publish notice of the availability of such\nreturn for inspection. Such notice shall be published, not later than\nthe day prescribed for filing such annual return (determined with regard\nto any extension of time for filing), in a newspaper designated by the\nclerk of the county in which the principal office of the trust is\nlocated, having general circulation in that county. When such county is\nlocated within a city with a population of one million or more, such\ndesignation shall be as though the notice were a notice or advertisement\nof judicial proceedings. The notice shall state that the annual return\nof the trust is available at its principal office for inspection during\nregular business hours by any citizen who requests it within one hundred\neighty days after the date of such publication, and shall state the\naddress and the telephone number of the trust's principal office and the\nname of its principal manager. A copy or notice published in a newspaper\nother than the newspaper or newspapers designated by the county clerk\nshall not be deemed to be one of the publications required by this\nparagraph.\n  (c) All references in this section to sections of the code shall be to\nsuch sections as amended from time to time, or to corresponding\nprovisions of subsequent internal revenue laws.\n  (d) Nothing in this act shall impair the rights and powers of the\ncourts or the attorney-general of this state.\n