reglab/housing_qa huggingface dataset:
AK Stat § 13.38.220 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 1. Preliminary Provisions; Power to Adjust.|Sec. 13.38.220. Judicial control of discretionary powers.

(a) A court may not change a fiduciary's decision to exercise or not to exercise a discretionary power conferred by this chapter unless the court determines that the decision was an abuse of the fiduciary's discretion. (b) If a court determines that a fiduciary has abused the fiduciary's discretion regarding a discretionary power conferred by this chapter, the remedy is to restore the income and remainder beneficiaries to the positions they would have occupied if the fiduciary had not abused the fiduciary's discretion, according to the following rules: (1) to the extent that the abuse of discretion has not resulted in a distribution to a beneficiary or has resulted in a distribution that is too small, the court shall require the fiduciary to distribute from the trust an amount to the beneficiary that the court determines will restore the beneficiary, in whole or in part, to the beneficiary's appropriate position; (2) to the extent that the abuse of discretion has resulted in a distribution to a beneficiary that is too large, the court shall restore the beneficiaries, the trust, or both, in whole or in part, to their appropriate positions by requiring the fiduciary to withhold an amount from one or more future distributions to the beneficiary who received the distribution that was too large or by requiring that beneficiary or that beneficiary's estate to return some or all of the distribution to the trust, notwithstanding a spendthrift or similar provision; (3) if the abuse of discretion concerns the power to convert a trust into a unitrust, the court shall require the trustee either to convert into a unitrust or to reconvert from a unitrust; (4) to the extent that the court is unable, after applying (1) - (3) of this subsection, to restore the beneficiaries, the trust, or both to the positions they would have occupied if the fiduciary had not abused the fiduciary's discretion, the court may require the fiduciary to pay an appropriate amount from the fiduciary's own funds to one or more of the beneficiaries, the trust, or both.
AK Stat § 13.38.300 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.300. Power to convert to unitrust.

Unless expressly prohibited by the governing instrument, a trustee may release the power to adjust under AS 13.38.210 and may convert a trust into a unitrust as described in AS 13.38.300 - 13.38.435 if (1) the trustee determines that the conversion will enable the trustee to better carry out the intent of the settlor or testator and the purposes of the trust; (2) the trustee gives written notice of the trustee's intention to release the power to adjust, of the trustee's intention to convert the trust into a unitrust, of the unitrust percentage selected, of the smoothing period selected, and of how the unitrust will operate, including what initial decisions the trustee intends to make under AS 13.38.340, to all the sui juris beneficiaries who (A) are currently eligible to receive income from the trust; (B) would be eligible, if a power of appointment were not exercised, to receive income from the trust if the interest of all of the beneficiaries eligible to receive income under (A) of this paragraph were to terminate immediately before the giving of the notice; and (C) would, if a power of appointment were not exercised, receive a distribution of principal if the trust were to terminate immediately before the giving of the notice; (3) there are at least one sui juris beneficiary under (2)(A) of this section and at least one sui juris beneficiary under (2)(B) or (C) of this section; and (4) a sui juris beneficiary does not object to the conversion to a unitrust in a writing delivered to the trustee within 60 days after the mailing of the notice under (2) of this section.
AK Stat § 13.38.310 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.310. Judicially approved conversion; beneficiary request for conversion.

(a) A trustee may petition the court to approve the conversion to a unitrust if (1) a beneficiary timely objects to the conversion to a unitrust; (2) there is not a sui juris beneficiary who is currently eligible under AS 13.38.300(2)(A) or who would be eligible under AS 13.38.300(2)(B) or (C); or (3) the trustee is a beneficiary. (b) A beneficiary may request a trustee to convert to a unitrust. If the trustee does not convert, the beneficiary may petition the superior court to order the conversion. (c) The superior court shall approve the conversion or direct the requested conversion if the court concludes that the conversion will enable the trustee to better carry out the intent of the settlor or testator and the purposes of the trust.
AK Stat § 13.38.320 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.320. Factors to be considered.

In deciding whether to exercise the power conferred by AS 13.38.300, a trustee may consider, among other things, (1) the size of the trust; (2) the nature and estimated duration of the trust; (3) the liquidity and distribution requirements of the trust; (4) the need for regular distributions and preservation and appreciation of capital; (5) the expected tax consequences of the conversion; (6) the assets held in the trust; the extent to which they consist of financial assets, interests in closely held enterprises, tangible and intangible personal property, or real property; and the extent to which an asset is used by a beneficiary; (7) to the extent reasonably known to the trustee, the need of the beneficiaries for present and future distributions authorized or required by the governing instrument; (8) whether and to what extent the governing instrument gives the trustee the power to invade principal or accumulate income or prohibits the trustee from invading principal or accumulating income and the extent to which the trustee has exercised a power from time to time to invade principal or accumulate income; (9) the actual and anticipated effect of economic conditions on principal and income and the effects of inflation and deflation.
AK Stat § 13.38.330 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.330. Directions after conversion.

(a) After a trust is converted to a unitrust, the trustee shall (1) follow an investment policy seeking a total return for the investments held by the trust, whether the return is to be derived from (A) appreciation of capital; (B) earnings and distributions from capital; or (C) both (A) and (B) of this paragraph; and (2) make regular distributions in accordance with the governing instrument construed in accordance with the provisions of this section. (b) After a trust has been converted to a unitrust, “income” in the governing instrument means an annual distribution equal to the amount produced by the application of a fixed unitrust percentage established under (d) of this section to the net fair market value, as determined annually, of the trust's assets, whether the assets would be considered income or principal under other provisions of this chapter, averaged over the lesser of (1) the preceding years in the smoothing period selected by the trustee; or (2) the period during which the trust has been in existence. (c) [Repealed, § 46 ch 45 SLA 2013.]  (d) The unitrust percentage to be used in determining the amount to be distributed from a unitrust to a beneficiary must be a reasonable current return from the unitrust of at least three percent and not more than five percent, taking into account the intentions of the trustor of the unitrust as expressed in the governing instrument, the needs of the beneficiaries, general economic conditions, projected current earnings for the unitrust, projected appreciation for the unitrust, and the effect of projected inflation on the unitrust.
AK Stat § 13.38.340 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.340. Trustee's discretionary powers regarding unitrust.

The trustee may, in the trustee's discretion, from time to time, determine (1) the effective date of a conversion to a unitrust; (2) the provisions for prorating a unitrust distribution for a short year in which a beneficiary's right to payments commences or ceases; (3) the frequency of unitrust distributions during the year; (4) the effect of other payments from or contributions to the trust on the trust's valuation; (5) whether to value the trust's assets annually or more frequently; (6) whether to use a smoothing period of three, four, or five years; (7) what valuation dates to use; (8) how frequently to value nonliquid assets and whether to estimate their value; (9) whether to omit trust property occupied or possessed by a beneficiary from the calculations; and (10) other matters necessary for the proper functioning of the unitrust.
AK Stat § 13.38.350 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.350. Unitrust deductions and distributions.

(a) Expenses that would be deducted from income if the trust were not a unitrust may not be deducted from the unitrust distribution. (b) Unless otherwise provided by the governing instrument, a unitrust distribution shall be considered to have been paid from net income as net income would be determined if the trust were not a unitrust. To the extent net income is insufficient, the unitrust distribution shall be considered to have been paid from ordinary income that is allocable under federal income tax rules to net income as determined for a unitrust. To the extent that the ordinary income is insufficient, the unitrust distribution is considered to have been paid from net realized short-term capital gains. To the extent net income, ordinary income, and net realized short-term capital gains are insufficient, the unitrust distribution shall be considered to have been paid from net realized long-term capital gains. To the extent net income, ordinary income, and net realized short-term and long-term capital gains are insufficient, the unitrust distribution shall be paid from the principal of the trust.
AK Stat § 13.38.360 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.360. Court orders regarding unitrust.

The trustee or, if the trustee declines to petition the court, a beneficiary may petition the court to provide for a distribution of net income, as would be determined if the unitrust were not a unitrust, in excess of the unitrust distribution if the distribution is necessary to preserve a tax benefit.
AK Stat § 13.38.370 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.370. Effects of conversion.

A conversion to a unitrust does not affect a provision in the governing instrument directing or authorizing the trustee to distribute principal or authorizing a beneficiary to withdraw a portion or all of the principal.
AK Stat § 13.38.380 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.380. Prohibited conversions; exception.

(a) A trustee may not convert a trust into a unitrust if (1) payment of the unitrust distribution would change the amount payable to a beneficiary as a fixed annuity or a fixed fraction of the value of the trust assets; (2) the unitrust distribution would be made from an amount that is permanently set aside for charitable purposes under the governing instrument and for which a federal estate or gift tax deduction has been taken; (3) possessing or exercising the power to convert would cause an individual to be treated as the owner of all or part of the trust for federal income tax purposes, and the individual would not be treated as the owner if the trustee did not possess the power to convert; (4) possessing or exercising the power to convert would cause all or part of the trust assets to be subject to federal estate or gift tax with respect to an individual, and the assets would not be subject to federal estate or gift tax with respect to the individual if the trustee did not possess the power to convert; (5) the conversion would result in the disallowance of a federal estate tax or gift tax marital deduction that would be allowed if the trustee did not have the power to convert; or (6) the trustee is a beneficiary of the trust. (b) Notwithstanding (a)(2) of this section, a trustee may elect to convert a trust to a unitrust if both the income and principal of the trust being converted to a unitrust are permanently set aside for charitable purposes and if the provisions of AS 13.38.440 - 13.38.490 are followed.
AK Stat § 13.38.390 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.390. Permissible conversion where otherwise prohibited.

(a) If AS 13.38.380(a)(3), (4), or (6) applies to a trustee and there is more than one trustee, a co-trustee to whom the provision does not apply may convert the trust, unless the exercise of the power by the remaining trustee is prohibited by the governing instrument. (b) If AS 13.38.380(a)(3), (4), or (6) applies to all the trustees, the trustees may petition the court to direct a conversion. In the alternative, the trustees may appoint an independent person who shall be granted the authority, while acting in a fiduciary capacity, to make decisions in place of the trustees relating to a conversion, reconversion, and the exercise of discretionary powers under AS 13.38.340.
AK Stat § 13.38.400 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.400. Reconversion from a unitrust.

A trustee may reconvert a trust that has been converted into a unitrust under AS 13.38.300 by following the same procedures provided in AS 13.38.300 - 13.38.435 for converting a trust into a unitrust. If a unitrust is reconverted under this section, the trustee's power to adjust under AS 13.38.210 applies to the trustee after the reconversion.
AK Stat § 13.38.410 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.410. Release of power to convert to unitrust.

(a) A trustee may release the power conferred by AS 13.38.300 to convert to a unitrust if the trustee (1) is uncertain about whether possessing or exercising the power will cause a result described in AS 13.38.380(a)(3), (4), or (5); or (2) determines that possessing or exercising the power will or may deprive the trust of a tax benefit or impose a tax burden not described in AS 13.38.380. (b) The release of a power under (a) of this section may be permanent or for a specified period, including a period measured by the life of an individual.
AK Stat § 13.38.420 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.420. Express total return unitrusts.

(a) This section applies to a trust that, by its governing instrument, requires the distribution, at least annually, of a unitrust amount. (b) The trustee of an express total return unitrust may determine the unitrust amount by reference to the net fair market value of the unitrust's assets in one or more years. (c) Distribution of a unitrust amount is considered a distribution of all of the income of an express total return unitrust and is considered to be an income interest. (d) Distribution of a unitrust amount is considered to be a reasonable apportionment of the total return of an express total return unitrust. (e) An express total return unitrust that provides for a distribution based on a unitrust percentage in excess of five percent of the net fair market value of the unitrust assets a year is considered a distribution of all of the income of the unitrust and a distribution of principal of the unitrust to the extent that the distribution exceeds five percent a year. (f) The governing instrument of an express total return unitrust may grant discretion to the trustee to adopt a consistent practice of treating capital gains as part of the unitrust amount to the extent that the unitrust amount exceeds the income determined as if the trust were not an express total return unitrust, or the governing instrument may specify the ordering of classes of income. (g) Unless the terms of the express total return unitrust specifically provide otherwise, a unitrust amount is considered a distribution made from the following sources, which are listed in order of priority: (1) net income determined as if the trust were not a unitrust; (2) ordinary income not allocable to net income; (3) net realized short-term capital gains; (4) net realized long-term capital gains; and (5) the principal of the trust estate. (h) The governing instrument of an express total return unitrust may provide that the trustee may exclude assets used by the unitrust's beneficiary, including a residence property or tangible personal property, from the net fair market value of the unitrust's assets for the purposes of computing the unitrust amount. These assets may be considered equivalent to income or to the unitrust amount. (i) In this section, (1) “express total return unitrust” means a trust that, by its governing instrument, requires the distribution, at least annually, of a unitrust amount; (2) “unitrust amount” means an amount equal to a fixed percentage of not less than three nor more than five percent each year of the net fair market value of the annual value of the trust's assets distributed from an express total return unitrust to a beneficiary.
AK Stat § 13.38.430 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.430. Power to treat gains as part of distribution of principal.

Unless prohibited by the unitrust's governing instrument or specifically addressed by AS 13.38.350 or 13.38.420, the trustee of a unitrust may treat gains from the sale of capital assets of the unitrust as part of a distribution of principal to a beneficiary, and, if the trustee treats those gains as part of a distribution of principal to a beneficiary, the trustee shall treat those gains consistently on the unitrust's books, records, and tax returns as part of a distribution to a beneficiary.
AK Stat § 13.38.435 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 2. Unitrusts.|Sec. 13.38.435. Definitions.

In AS 13.38.300 - 13.38.435, (1) “smoothing period” means the period of years over which the fair market value of the assets of a unitrust are averaged; (2) “unitrust percentage” means the unitrust percentage established under AS 13.38.330(d).
AK Stat § 13.38.440 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 3. Charitable Trust Election.|Sec. 13.38.440. Charitable trust election.

The trustee of a trust held exclusively for charitable purposes may elect to be governed by AS 13.38.440 - 13.38.490 unless the governing instrument expressly provides that the election provided by AS 13.38.440 - 13.38.490 is not available.
AK Stat § 13.38.450 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 3. Charitable Trust Election.|Sec. 13.38.450. Requirements for making election.

To make an election under AS 13.38.440 - 13.38.490, the trustee shall adopt and follow an investment policy seeking a total return for the investments held by the trust, whether the return is to be derived from appreciation of capital or earnings and distributions with respect to capital or both. The policy constituting the election must be in writing, must be maintained as part of the permanent records of the trust, and must recite that it constitutes an election to be governed by AS 13.38.440 - 13.38.490.
AK Stat § 13.38.460 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 3. Charitable Trust Election.|Sec. 13.38.460. Selection of percentage after charitable trust election.

(a) After a trustee has elected under AS 13.38.440 for the trust to be governed by AS 13.38.440 - 13.38.490, the trustee shall, in a writing maintained as part of the permanent records of the trust, select the percentage of the value of the trust that will be considered income and determine that it is consistent with the long-term preservation of the real value of the principal of the trust, but the percentage may not be less than two percent or more than seven percent each year of the principal value of the trust. The trustee may elect to change a percentage whenever the trustee determines that the new percentage is necessary and prudent. (b) For a charitable trust required by 26 U.S.C. 4942 (Internal Revenue Code) to distribute a higher amount than the percentage selected under (a) of this section, the amount required by 26 U.S.C. 4942 (Internal Revenue Code) controls over the percentage selected.
AK Stat § 13.38.470 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 3. Charitable Trust Election.|Sec. 13.38.470. Revocation of charitable trust election.

The trustee may revoke an election to be governed by AS 13.38.440 - 13.38.490 if the revocation is made as part of an alternative investment policy seeking the long-term preservation of the real value of the principal of the trust. The revocation and alternative investment policy must be in writing and maintained as part of the permanent records of the trust.
AK Stat § 13.38.480 (2021)
2021 Alaska Statutes|Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions|Chapter 38. Alaska Principal and Income Act|Article 3. Charitable Trust Election.|Sec. 13.38.480. Value determination.

For the purposes of applying AS 13.38.440 - 13.38.490, the value of the trust is the fair market value of the cash and other assets held by the trustee with respect to the trust, whether these assets would be considered income or principal under the other provisions of this chapter, determined at least annually. In the discretion of the trustee, the value of the trust may be averaged over a period of three or more preceding years, except that, if the trust has been in existence less than three years and the trustee decides to average the value, the average shall be determined over the period during which the trust has been in existence.