reglab/statecodes huggingface dataset:
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 36. Trust Administration › Article 5. Miscellaneous Provisions. › Sec. 13.36.345. Modification or termination of irrevocable trusts because of unanticipated circumstances.

(a) On petition by a trustee, settlor, or beneficiary, a court may modify the administrative or dispositive terms of an irrevocable trust or terminate an irrevocable trust if, because of circumstances not anticipated by the settlor, modification or termination would substantially further the settlor's purposes in creating the trust.
(b) Upon termination of a trust under this section, the trust property shall be distributed in accordance with the settlor's probable intention.
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 36. Trust Administration › Article 5. Miscellaneous Provisions. › Sec. 13.36.350. Reformation to correct mistakes in irrevocable trusts.

(a) On petition by a trustee, settlor, or beneficiary, a court may reform the terms of an irrevocable trust, even if the trust instrument is not ambiguous, to conform to the settlor's intention if the failure to conform was due to a mistake of fact or law, whether in expression in the trust or inducement to create the trust, and if the settlor's intent can be established by clear and convincing evidence.
(b) A court may consider evidence, including direct evidence contradicting the plain meaning of the text, when determining the settlor's intent or for any other purpose under this section.
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 36. Trust Administration › Article 5. Miscellaneous Provisions. › Sec. 13.36.355. Construction or modification of trust to achieve settlor's tax objectives.

(a) The terms of a trust shall be construed to achieve the settlor's tax objectives.
(b) On petition by a trustee, settlor, or beneficiary, a court may modify the terms of an irrevocable trust to achieve the settlor's tax objectives in a manner that does not violate the settlor's probable intent. The court may order that the modification operate retroactively.
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 36. Trust Administration › Article 5. Miscellaneous Provisions. › Sec. 13.36.360. Modification or termination of irrevocable trust by consent.

(a) Except as otherwise provided by this section, on petition by a trustee, settlor, or beneficiary, a court may modify or terminate an irrevocable trust if all of the beneficiaries consent and if continuation of the trust on the existing terms of the trust is not necessary to further a material purpose of the trust. However, the court, in its discretion, may determine that the reason for modifying or terminating the trust under the circumstances outweighs the interest in accomplishing the material purposes of the trust. The inclusion of a restriction on the voluntary or involuntary transfer of trust interests under AS 34.40.110 may constitute a material purpose of the trust under this subsection, but is not presumed to constitute a material purpose of the trust under this subsection.
(b) Unless otherwise provided in the trust instrument, an irrevocable trust may not be modified or terminated under this section while a settlor is also a discretionary beneficiary of the trust.
(c) If a beneficiary other than a qualified beneficiary does not consent to a modification or termination of an irrevocable trust that is proposed by the trustee, settlor, or other beneficiaries, a court may approve the proposed modification or termination if the court determines
(1) if all the beneficiaries had consented, the trust could have been modified or terminated under this section; and
(2) the rights of a beneficiary who does not consent will be adequately protected or not significantly impaired.
(d) [Repealed, § 15 ch 7 SLA 2008.]
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 36. Trust Administration › Article 5. Miscellaneous Provisions. › Sec. 13.36.365. Uneconomical irrevocable trust.

(a) Notwithstanding the other provisions of AS 13.36.338 - 13.36.365, if the value of the property of an irrevocable trust is less than $50,000, the trustee may terminate the trust unless the trust instrument provides otherwise.
(b) Notwithstanding the other provisions of AS 13.36.338 - 13.36.365 and the terms of the trust, on petition to the superior court by a trustee, settlor, or beneficiary, the court may modify or terminate an irrevocable noncharitable trust, or remove the trustee and appoint a different trustee, if the court determines that the value of the trust property is insufficient to justify the cost of administration.
(c) Upon termination of a trust under this section, the trustee shall distribute the trust property in accordance with the settlor's probable intent.
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 36. Trust Administration › Article 5. Miscellaneous Provisions. › Sec. 13.36.368. Claims against revocable trusts.

(a) Whether or not the terms of the trust contain a spendthrift restriction,
(1) during the lifetime of the settlor of a revocable trust, the property of the trust is subject to claims of the settlor's creditors; and
(2) except as otherwise provided in (b) of this section, after the death of the settlor of a trust that was revocable at the settlor's death, and subject to the settlor's right to direct the source from which claims may be paid, the property of the trust is subject to claims to the extent the settlor's estate is not adequate to satisfy the claims.
(b) With respect to claims in connection with the settlement after the death of the settlor of a trust that was revocable at the settlor's death,
(1) a creditor's claim that would be allowed or barred against a decedent's estate under AS 13.16.450 - 13.16.525 shall be allowed or barred against the trustee of the trust, the trust property, and the creditors and beneficiaries of the trust;
(2) if the personal representative of the decedent's estate follows the procedures provided by AS 13.16.450 - 13.16.525, then claims that are allowed or barred against the decedent's estate shall also be allowed or barred against the assets of the trust;
(3) if the personal representative of the decedent's estate fails to follow the procedures stated by AS 13.16.450 - 13.16.525, the trustee of the trust may file a petition with the superior court for a determination of claims and follow the procedures established by AS 13.16.450 - 13.16.525, and claims against the trust and against the decedent's estate shall be allowed or barred under those procedures.
(c) In (a)(2) and (b) of this section, “claim” means a claim
(1) of a creditor of the settlor;
(2) for the expenses of the administration of the settlor's estate;
(3) for the expenses of the settlor's funeral; and
(4) for the expenses of the disposal of the settlor's remains.
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 36. Trust Administration › Article 5. Miscellaneous Provisions. › Sec. 13.36.370. Trust protector.

(a) A trust instrument may provide for the appointment of a trust protector.
(b) A trust protector appointed under (a) of this section has the powers, delegations, and functions conferred on the protector by the trust instrument, which may include the power to
(1) remove and appoint a trustee;
(2) modify or amend the trust instrument to achieve favorable tax status or to respond to changes in 26 U.S.C. (Internal Revenue Code) or state law, or the rulings and regulations under those laws;
(3) increase or decrease the interests of any beneficiary to the trust; and
(4) modify the terms of a power of appointment granted by the trust.
(c) A modification authorized under (b) of this section may not
(1) grant a beneficial interest to an individual or a class of individuals unless the individual or class of individuals is specifically provided for under the trust instrument;
(2) modify the beneficial interest of a governmental unit in a trust created under AS 47.07.020(f).
(d) Subject to the terms of the trust instrument, a trust protector is not liable or accountable as a trustee or fiduciary because of an act or omission of the trust protector taken when performing the function of a trust protector under the trust instrument.
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 36. Trust Administration › Article 5. Miscellaneous Provisions. › Sec. 13.36.375. Trustee advisor.

(a) A trust instrument may provide for the appointment of a person to act as an advisor to the trustee with regard to all or some of the matters relating to the property of the trust.
(b) Unless the terms of the trust instrument provide otherwise, if an advisor is appointed under (a) of this section, the property and management of the trust and the exercise of all powers and discretionary acts exercisable by the trustee remain vested in the trustee as fully and effectively as if an advisor were not appointed, the trustee is not required to follow the advice of the advisor, and the advisor is not liable as or considered to be a trustee of the trust or a fiduciary when acting as an advisor to the trust.
(c) Notwithstanding (b) of this section, if, by the terms of the trust instrument, a trustee is designated to follow the directions of an advisor who is not designated in the trust instrument as being a trustee, the trustee who, by the terms of the trust instrument, is required to follow the directions of the advisor is not liable, individually or as a fiduciary, to a beneficiary for a consequence of the trustee's compliance with the advisor's directions, regardless of the information available to the trustee, and the trustee does not have an obligation to review, inquire, investigate, or make recommendations or evaluations with respect to the exercise of a power of the trustee if the exercise of the power complies with the directions given to the trustee. An advisor under this subsection is liable to the beneficiaries as a fiduciary with respect to the exercise of the advisor's directions by a trustee as if the trustee were not in office, and the advisor has the exclusive obligation to account to the beneficiaries and to defend an action brought by the beneficiaries with respect to the exercise of the advisor's directions by the trustee.
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 36. Trust Administration › Article 5. Miscellaneous Provisions. › Sec. 13.36.390. Definitions.

In this chapter,
(1) “party in interest” means, if the trust is
(A) revocable and if the settlor is incapacitated, the settlor's legal representative under applicable law or the settlor's agent under a durable power of attorney; or
(B) irrevocable,
(i) each trustee serving at the time;
(ii) each beneficiary entitled to receive a mandatory distribution of income or principal from a trust or, if a beneficiary entitled to receive a mandatory distribution of income or principal from a trust is not 19 years of age or is incapacitated, the beneficiary's legal representative under applicable law or the beneficiary's agent under a durable power of attorney; and
(iii) each vested remainder beneficiary in existence at the time or, if a vested remainder beneficiary is not 19 years of age or is incapacitated, the vested remainder beneficiary's legal representative under applicable law or the vested remainder beneficiary's agent under a durable power of attorney;
(2) “qualified beneficiary” means a beneficiary who
(A) on the date the beneficiary's qualification is determined, is entitled or eligible to receive a distribution of trust income or principal; or
(B) would be entitled to receive a distribution of trust income or principal if the event causing the trust's termination occurs;
(3) “qualified person” means
(A) an individual who, except for brief intervals, military service, attendance at an educational or training institution, or for absences for good cause shown, resides in this state, whose true and permanent home is in this state, who does not have a present intention of moving from this state, and who has the intention of returning to this state when away;
(B) a trust company that is organized under AS 06.26 and that has its principal place of business in this state; or
(C) a bank that is organized under AS 06.05, or a national banking association that is organized under 12 U.S.C. 21 - 216d, if the bank or national banking association possesses and exercises trust powers and has its principal place of business in this state;
(4) “settlor” means a person who transfers property in trust and includes a person who furnishes the property transferred to a trust even if the trust is created by another person;
(5) “state jurisdiction provision” means a provision that the laws of this state govern the validity, construction, and administration of a trust and that the trust is subject to the jurisdiction of this state.
2023 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. 13.38.200. Fiduciary duties; general principles.

(a) In allocating receipts and disbursements to or between principal and income and with respect to any matter within the scope of this chapter, a fiduciary
(1) shall administer a trust or estate in accordance with the governing instrument, even if there is a different provision in this chapter;
(2) may administer a trust or estate by the exercise of a discretionary power of administration regarding a matter within the scope of this chapter given to the fiduciary by the governing instrument, even if the exercise of the power produces a result different from a result required or permitted by this chapter; an inference that the fiduciary has improperly exercised the discretionary power does not arise from the fact that the fiduciary has made an allocation contrary to a provision of this chapter;
(3) shall administer a trust or estate in accordance with this chapter if the governing instrument does not contain a different provision or does not give the fiduciary a discretionary power of administration regarding a matter within the scope of this chapter; and
(4) shall add a receipt or charge a disbursement to principal to the extent that the governing instrument and this chapter do not provide a rule for allocating the receipt or disbursement to or between principal and income.
(b) In exercising a discretionary power of administration regarding a matter within the scope of this chapter, whether granted by the governing instrument or this chapter, including AS 13.38.210 and 13.38.300 - 13.38.435, a fiduciary shall administer a trust or estate impartially based on what is fair and reasonable to all of the beneficiaries, except to the extent that the governing instrument clearly manifests an intention that the fiduciary shall or may favor one or more of the beneficiaries. A determination in accordance with this chapter is presumed to be fair and reasonable to all of the beneficiaries.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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).
2023 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.
2023 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.
2023 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.
2023 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.
2023 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.
2023 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. 13.38.490. Definitions.

In AS 13.38.440 - 13.38.490, except as otherwise expressly stated in AS 13.38.440 - 13.38.490,
(1) “income” means the percentage of the value of the trust computed under AS 13.38.440 - 13.38.490;
(2) “principal” means all assets other than those identified as income in (1) of this section that are held by the trustee with respect to the trust.
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 38. Alaska Principal and Income Act › Article 4. Decedent's Estate or Terminating Income Interest. › Sec. 13.38.500. Determination and distribution of net income.

After a decedent dies in the case of an estate, or after an income interest in a trust ends, a fiduciary
(1) of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property specifically given to a beneficiary under (5) of this section and the provisions applicable to trustees in AS 13.38.550 - 13.38.860; the fiduciary shall distribute the net income and net principal receipts to the beneficiary who is to receive the specific property;
(2) shall distribute to a beneficiary or trust that receives a pecuniary amount a share of net income equal to the beneficiary's or trust's fractional interest in undistributed principal assets as determined under AS 13.38.510(a), (b)(1), (b)(3), and (c) - (e); the share accrues from the date of death of a decedent, in the case of an estate, or the date of death of a settlor or specified event, in the case of a revocable or irrevocable trust;
(3) shall determine the remaining net income of a decedent's estate or a terminating income interest under the provisions applicable to trustees in AS 13.38.550 - 13.38.860 and by
(A) including in net income all income from property used to discharge liabilities; and
(B) paying from principal the debts, the funeral expenses, the costs of disposition of remains, the family allowance under AS 13.12.404, fees of personal representatives and their attorneys and accountants, and the taxes, related interest, and penalties described in AS 13.38.810(a)(7) that are apportioned to the estate or terminating income interest by the governing instrument or applicable law;
(4) shall distribute the net income remaining after distributions required by (2) of this section in the manner described in AS 13.38.510 to all other beneficiaries;
(5) may not reduce principal or income receipts from property described in (1) of this section because of a payment described in AS 13.38.800 or 13.38.810 to the extent that the governing instrument or applicable law requires the fiduciary to make the payment from assets other than the property or to the extent that the fiduciary recovers or expects to recover the payment from a third party; the net income and principal receipts from the property are determined by
(A) including all of the amounts the fiduciary receives or pays with respect to the property, whether those amounts accrued or became due before, on, or after the date of a decedent's death or an income interest's terminating event; and
(B) making a reasonable provision for amounts that the fiduciary believes the estate or terminating income interest may become obligated to pay after the property is distributed.
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 38. Alaska Principal and Income Act › Article 4. Decedent's Estate or Terminating Income Interest. › Sec. 13.38.510. Distribution to residuary and remainder beneficiaries.

(a) Each beneficiary described in AS 13.38.500(4) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one distribution of assets to beneficiaries to whom this section applies, each beneficiary, including one who does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of death or terminating event or earlier distribution date but has not distributed as of the current distribution date.
(b) In determining a beneficiary's share of net income, the following rules apply:
(1) the beneficiary is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold or applied to meet principal obligations;
(2) the beneficiary's fractional interest in the undistributed principal assets shall be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts;
(3) the beneficiary's fractional interest in the undistributed principal assets shall be calculated on the basis of the aggregate value of those assets as of the distribution date without reducing the value by any unpaid principal obligation.
(c) If a fiduciary does not distribute all of the collected but undistributed net income to each person as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income.
(d) To the extent that the fiduciary considers it appropriate, if this section applies to the income from an asset, the fiduciary may apply the rules in this section to net gain or loss from the disposition of a principal asset realized after the date of death or terminating event or an earlier distribution date.
(e) For the purposes of this section, the distribution date may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.
2023 Alaska Statutes › Title 13. Decedents' Estates, Guardianships, Transfers, Trusts, and Health Care Decisions › Chapter 38. Alaska Principal and Income Act › Article 5. Allocation and Payment at Beginning and End of Income Interest. › Sec. 13.38.550. When right to income begins and ends.

(a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins
(1) on the date specified in the governing instrument; or
(2) if a date is not specified, on the date an asset becomes subject to a trust or successive income interest.
(b) An asset becomes subject to a trust on the date
(1) it is transferred to the trust, in the case of an asset that is transferred to a trust during the transferor's life;
(2) of a testator's death, in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or
(3) of an individual's death, in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.
(c) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under (d) of this section, even if there is an intervening period of administration to wind up the preceding income interest.
(d) An income interest ends on
(1) the day before an income beneficiary dies or another terminating event occurs; or
(2) the last day of a period during which there is not a beneficiary to whom a trustee may distribute income.