NY Est Pow & Trusts L § 8-1.8 (2021)
2021 New York Laws EPT - Estates, Powers and Trusts Article 8 - Charitable Trusts Part 1 - Rules Governing Charitable Trusts 8-1.8 - Private Foundations: Administration of Certain Trusts as Defined in the United States Internal Revenue Code of 1954

§ 8-1.8 Private foundations: administration of certain trusts as defined           in the United States internal revenue code of 1954  (a) For purposes of this section, a "trust" means a private foundation as  defined in section 509 of the United States Internal Revenue Code of 1986 ("code") including a private foundation charitable trust as defined in section 4947(a)(1) of the code, or a split-interest trust as  defined in  section  4947(a)(2)  of  the  code,  whether heretofore or hereafter created which is administered by a  trustee  described  in  subparagraph (a)(1)  of  section  8-1.4.  The  administration  of  a trust, as herein defined, is subject to the following provisions:  (1) The trust shall distribute for each taxable year such  amounts  at such  time  and  in  such  manner  as sufficient for such trust to avoid liability for any tax imposed on undistributed income under section 4942 of the code.  (2) The trust shall not engage in any act of self-dealing which  would result  in  the taxation of any amount involved with respect to any such act of self-dealing under section 4941 of the code.  (3) The trust shall not retain  any  excess  business  holdings  which would  result in the taxation of any such excess business holdings under section 4943 of the code unless the trust is exempt from section 4943 of the code pursuant to section 4947(b)(3)(A) or (B) of the code.  (4) The trust shall not make any investments in such a  manner  as  to jeopardize  the  carrying  out of any such trust's exempt purposes which would result in the taxation of any such investments under section  4944 of  the  code  unless  the trust is exempt from section 4944 of the code pursuant to section 4947(b)(3)(A) or (B) of the code.  (5) The trust shall not make  any  taxable  expenditures  which  would result  in  the  liability  of the trust for any tax imposed on any such taxable expenditures under section 4945 of the code.   Except  as  provided  in  paragraph  (b),   this   paragraph   applies notwithstanding any provision of the governing instrument of a trust.  (b)  Paragraph  (a) shall not apply with respect to assets transferred in trust prior to the effective date of this section to the extent  that it conflicts with any mandatory direction in the governing instrument of the  trust unless such conflicting direction is removed as impracticable under this article or in any other manner provided by law.  The  absence of a specific provision in the governing instrument of the trust for the current  use  of  the  principal of the fund, or the presence in such an instrument of a provision, as to the principal of a fund, limited to the principal's  being  held,  invested  and  reinvested,  is  not  such   a conflicting mandatory direction.  (b-1)  A  trust, as defined in paragraph (a) of this section, required by section 6104(d) of the code to make available for  public  inspection its  annual  return  shall  publish  notice  of the availability of such return for inspection. Such notice shall be published,  not  later  than the day prescribed for filing such annual return (determined with regard to  any  extension of time for filing), in a newspaper designated by the clerk of the county in which  the  principal  office  of  the  trust  is located,  having general circulation in that county. When such county is located within a city with a population of one  million  or  more,  such designation shall be as though the notice were a notice or advertisement of  judicial  proceedings. The notice shall state that the annual return of the trust is available at its principal office for inspection  during regular business hours by any citizen who requests it within one hundred eighty  days  after  the  date  of such publication, and shall state the address and the telephone number of the trust's principal office and the name of its principal manager. A copy or notice published in a newspaper other than the newspaper or newspapers designated by  the  county  clerk  shall  not  be  deemed  to  be  one of the publications required by this paragraph.  (c) All references in this section to sections of the code shall be to such  sections  as  amended  from  time  to  time,  or  to corresponding provisions of subsequent internal revenue laws.  (d) Nothing in this act shall impair the  rights  and  powers  of  the courts or the attorney-general of this state.