reglab/statecodes huggingface dataset:
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-34. Net Receipts From the Sale of Timber and Related Products

Sec. 34. (a) To the extent that a trustee accounts for receipts from the sale of timber and related products under this section, the trustee shall allocate the net receipts:
(1) to income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;
(2) to principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;
(3) to or between income and principal if the net receipts are from:
(A) the lease of timberland; or
(B) a contract to cut timber from land owned by a trust;
by determining the amount of timber removed from the land under the lease or contract and applying the rules in subdivisions (1) and (2); or
(4) to principal to the extent that advance payments, bonuses, and other payments are not allocated under subdivision (1), (2), or (3).
(b) In determining net receipts to be allocated under subsection (a), a trustee shall deduct and transfer to principal a reasonable amount for depletion.
(c) This chapter applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.
(d) If a trust owns an interest in timberland, the trustee may allocate net receipts from the sale of timber and related products as provided in this chapter or in the manner used by the trustee before January 1, 2003. If the trust acquires an interest in timberland after December 31, 2002, the trustee shall allocate net receipts from the sale of timber and related products as provided in this chapter.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-35. Marital Deduction for Trust Assets

Sec. 35. (a) If:
(1) a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets; and
(2) the amounts that the trustee transfers from principal to income under section 15 of this chapter and distributes to the spouse from principal under the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction;
the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by section 15(a) of this chapter. The trustee may decide which action or combination of actions to take.
(b) In cases not governed by subsection (a), proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-36. Transactions in Derivatives; Granting, Acquiring, or Exercising an Option

Sec. 36. (a) As used in this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments that gives a trust the right or obligation to participate in:
(1) some or all changes in the price of a tangible or intangible asset or group of assets; or
(2) changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.
(b) To the extent that a trustee does not account under section 25 of this chapter for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.
(c) If a trustee:
(1) grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted;
(2) grants an option that permits another person to sell property to the trust; or
(3) acquires an option to buy property for the trust or an option to sell an asset owned by the trust;
and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option must be allocated to principal. An amount paid to acquire the option must be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, must be allocated to principal.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-37. Asset Backed Securities

Sec. 37. (a) As used in this section, "asset backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return. The term does not include an asset to which section 23 or section 31 of this chapter applies.
(b) If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment that the payer identifies as being from interest or other current return and shall allocate the balance of the payment to principal.
(c) If a trust receives one (1) or more payments in exchange for the trust's entire interest in an asset backed security in one (1) accounting period, the trustee shall allocate the payments to principal. If a payment is one (1) of a series of payments that will result in the liquidation of the trust's interest in the security over more than one (1) accounting period, the trustee shall allocate ten percent (10%) of the payment to income and the balance to principal.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-38. Disbursements From Income

Sec. 38. A trustee shall make the following disbursements from income to the extent that they are not disbursements to which section 18(a)(2)(B) or 18(a)(2)(C) of this chapter applies:
(1) one-half (1/2) of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee;
(2) one-half (1/2) of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests;
(3) all of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including:
(A) interest;
(B) ordinary repairs;
(C) regularly recurring taxes assessed against principal; and
(D) expenses of a proceeding or other matter that concerns primarily the income interest; and
(4) recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.
As added by P.L.84-2002, SEC.2. Amended by P.L.51-2014, SEC.17.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-39. Disbursements From Principal

Sec. 39. (a) A trustee shall make the following disbursements from principal:
(1) the remaining one-half (1/2) of the disbursements described in section 38(1) and 38(2) of this chapter;
(2) all of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale;
(3) payments on the principal of a trust debt;
(4) expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;
(5) premiums paid on a policy of insurance not described in section 38(4) of this chapter of which the trust is the owner and beneficiary;
(6) estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust; and
(7) disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters.
(b) If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-40. Principal Asset Subject to Depreciation

Sec. 40. (a) As used in this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one (1) year.
(b) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation:
(1) of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;
(2) during the administration of a decedent's estate; or
(3) under this section if the trustee is accounting under section 25 of this chapter for the business or activity in which the asset is used.
(c) An amount transferred to principal need not be held as a separate fund.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-41. Principal Disbursements; Income Transfers to Reimburse Principal or Create Principal Disbursement Reserve

Sec. 41. (a) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one (1) or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.
(b) Principal disbursements to which subsection (a) applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party:
(1) an amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;
(2) a capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments;
(3) disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions;
(4) periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and
(5) disbursements described in section 39(a)(7) of this chapter.
(c) If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection (a).
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-42. Tax Payments

Sec. 42. (a) A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.
(b) A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.
(c) A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:
(1) from income to the extent that receipts from the entity are allocated to income;
(2) from principal to the extent that receipts from the entity are allocated only to principal;
(3) proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and
(4) from principal to the extent that the tax exceeds the total receipts from the entity.
(d) After applying subsections (a) through (c), the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.
As added by P.L.84-2002, SEC.2. Amended by P.L.143-2009, SEC.20.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-43. Adjustments to Offset Shifting of Economic Interests or Tax Benefits Between Income Beneficiaries and Remainder Beneficiaries

Sec. 43. (a) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries that arise from:
(1) elections and decisions, other than those described in subsection (b), that the fiduciary makes from time to time regarding tax matters;
(2) an income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust; or
(3) the ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust, or a beneficiary.
(b) If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, a trust, or a beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 14. Uniform Principal and Income Act › 30-2-14-44. Uniformity of the Law

Sec. 44. In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
As added by P.L.84-2002, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-1. "Current Valuation Year"

Sec. 1. As used in this chapter, "current valuation year" means the year of the trust for which the unitrust amount is being determined.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-2. "Income Trust"

Sec. 2. As used in this chapter, "income trust" means:
(1) a trust created by an inter vivos or a testamentary instrument that has terms that describe the amount that may or must be distributed to a beneficiary by referring to the trust's income; or
(2) a cemetery perpetual care fund established under IC 23-14-48-2.
As added by P.L.3-2003, SEC.2. Amended by P.L.33-2019, SEC.8.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-3. "Net Fair Market Value"

Sec. 3. As used in this chapter, "net fair market value" means the fair market value of each asset comprising the trust reduced by the liens, debts, and encumbrances of the trust, regardless of whether the liens, debts, and encumbrances are allocable to a specific asset.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-4. "Total Return Unitrust"

Sec. 4. As used in this chapter, "total return unitrust" means an income trust that has been converted to a total return unitrust in accordance with this chapter.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-5. "Trustee"

Sec. 5. As used in this chapter, "trustee" refers to the:
(1) trustee of a trust; or
(2) if at least two (2) persons are acting as trustee, a majority of the trustees.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-6. "Unitrust Amount"

Sec. 6. As used in this chapter, "unitrust amount" means an amount computed as a percentage of the fair market value of the trust as set forth in this chapter.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-7. "Unitrust Rate"

Sec. 7. As used in this chapter, "unitrust rate" means the percentage of the fair market value of the trust that is determined under section 15 of this chapter and used to calculate the unitrust amount.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-9. Trustee's Power to Convert Trust, Reconvert Trust, and Change Unitrust Rate

Sec. 9. A trustee may:
(1) release the trustee's power to adjust between trust principal and income under IC 30-2-14-15 and convert an income trust to a total return unitrust;
(2) reconvert a total return unitrust to an income trust; or
(3) change the unitrust rate;
if the requirements of this chapter are met.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-10. Acting Without Court Approval

Sec. 10. (a) Unless expressly prohibited in the governing trust instrument, and if the trustee would not be prohibited from exercising the power to adjust under IC 30-2-14-15(a) because at least one (1) of the provisions of IC 30-2-14-15(c)(3) through IC 30-2-14-15(c)(7) would be applicable, a trustee may, without the approval of the court having jurisdiction of the trust, take an action set forth in section 9 of this chapter:
(1) if, in the case of a trust described in section 2(1) of this chapter:
(A) the trustee sends written notice of the trustee's proposed action to:
(i) the settlor of the trust, if the settlor is living; and
(ii) the trust beneficiaries described in IC 30-2-14-16(b); and
(B) no person who receives a written notice under clause (A) objects to the proposed action; or
(2) if, in the case of a trust described in section 2(2) of this chapter, the owner of the cemetery:
(A) directs the trustee to take the action; or
(B) consents to the action of the trustee.
(b) To the extent applicable, the notice provided under subsection (a)(1)(A) must:
(1) state the trustee's intent to release the power to adjust under IC 30-2-14-15 and to convert the trust to a total return unitrust; and
(2) describe how the unitrust will operate and any decisions made by the trustee under this chapter.
In the notice, the trustee shall also specify an effective date of the conversion, reconversion, or change in the unitrust rate.
(c) A person who receives notice under subsection (a)(1)(A) of a trustee's proposed action may object to the proposed action by delivering a written objection to the trustee not later than sixty (60) days after receiving the notice.
As added by P.L.3-2003, SEC.2. Amended by P.L.33-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-11. Petition by Trustee

Sec. 11. If a trustee:
(1) receives an objection under section 10 of this chapter;
(2) elects not to proceed under section 10 of this chapter; or
(3) is not able to proceed under section 10 of this chapter because the trustee does not have the power to adjust under IC 30-2-14-15(c)(5), IC 30-2-14-15(c)(6), or IC 30-2-14-15(c)(7);
the trustee may petition the court having jurisdiction of the trust for an order that allows the trustee to take an action described in section 9 of this chapter.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-12. Petition by Trust Beneficiary

Sec. 12. A trust beneficiary described in IC 30-2-14-16(b) may petition the court having jurisdiction of the trust to order the trustee to take an action described in section 9 of this chapter, if the action would not alter any amount in the trust that is permanently set aside for charitable purposes unless both income and principal are set aside.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-13. When Court Shall Approve Conversion, Reconversion, or Change in Rate

Sec. 13. If the court finds that the conversion, reconversion, or change in the unitrust rate under this chapter will enable the trustee to better carry out:
(1) in the case of a trust described in section 2(1) of this chapter, the intent of the settlor or testator and the purposes of the trust; or
(2) in the case of a trust described in section 2(2) of this chapter, the perpetual care (as defined in IC 23-14-33-30) of the cemetery;
the court shall approve the conversion, reconversion, or change in the unitrust rate under this chapter.
As added by P.L.3-2003, SEC.2. Amended by P.L.33-2019, SEC.10.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-14. Reconversion's Release of Power to Adjust Void

Sec. 14. This section applies if a total return unitrust is reconverted to an income trust. The trustee's release of the trustee's power under IC 30-2-14-15, if it was given at the time the trust was converted to a total return unitrust, is void when the trust is reconverted.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-15. Conversion to Unitrust; Unitrust Rate

Sec. 15. (a) This section applies to a trust described in section 2(1) of this chapter.
(b) When a trustee gives notice of a proposed action under section 10(a)(1)(A) of this chapter to convert a trust to a unitrust, the trustee must include the unitrust rate in the notice of proposed action.
(c) If:
(1) the trustee proposes a unitrust rate of four percent (4%) in the notice of proposed action; and
(2) no beneficiary entitled to notice of the proposed action makes a written objection to the unitrust rate under section 10(a)(1)(B) of this chapter;
the unitrust rate must be four percent (4%).
(d) A trust may have a unitrust rate that represents a reasonable current return from the trust and best reflects the goals of the trust and the intent of the settlor or testator, but that is not less than three percent (3%) or more than five percent (5%), if the rate is:
(1) agreed upon in writing by the trustee and the beneficiaries entitled to notice under section 11 of this chapter; or
(2) ordered by the court having jurisdiction of the trust.
As added by P.L.3-2003, SEC.2. Amended by P.L.33-2019, SEC.11.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-15.2. Unitrust Rate for a Cemetery Perpetual Care Fund

Sec. 15.2. (a) This section applies to a trust described in section 2(2) of this chapter.
(b) A trust may have a unitrust rate that represents a reasonable current return from the trust and best serves the purpose of the perpetual care (as defined in IC 23-14-33-30) of the cemetery, but that is not less than three percent (3%) or more than five percent (5%), if the rate is:
(1) agreed upon in writing by the trustee and the owner of the cemetery; or
(2) ordered by the court having jurisdiction of the trust.
As added by P.L.33-2019, SEC.12.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-16. Unitrust Amount; Initial Two Years of Trust

Sec. 16. For the first two (2) years of the trust or the first two (2) years after the conversion to a total return unitrust under this chapter, the unitrust amount for a current valuation year of the trust must be the product of the unitrust rate multiplied by the net fair market values of the assets held in the trust on the first business day of the current valuation year.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-17. Unitrust Amount; Successive Years

Sec. 17. Beginning with the third year of the trust, and each year after that year, the unitrust amount for a current valuation year of the trust is the product of the unitrust rate multiplied by the average of the net fair market values of the assets held in the trust on the first business day of:
(1) the current valuation year; and
(2) each of the two (2) years of the trust immediately preceding the current valuation year.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-18. Net Fair Market Value of Unitrust Assets

Sec. 18. In determining the net fair market value of each asset held in the trust under sections 16 and 17 of this chapter, the value of the following may not be included:
(1) Any residential property or tangible personal property that, as of the first business day of the current valuation year, at least one (1) income beneficiary of the trust has or had the right to:
(A) occupy; or
(B) possess or control;
other than in a capacity as trustee. However, the right of occupancy or the right to possession or control shall be considered to be the unitrust amount with respect to the residential property or the tangible personal property.
(2) Any asset specifically given to a beneficiary under the terms of the trust and the return on that investment. The return on the investment shall be distributable to the beneficiary.
(3) Any assets that are held in a testator's estate.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-19. Trustee Powers

Sec. 19. (a) The trustee may exclude any assets for which the fair market value is not readily determinable from the determination of net fair market value of trust assets. However, the terms of the trust continue to apply to these assets.
(b) The trustee may determine any other matter necessary for the proper functioning of the total return unitrust.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-20. Prohibited Reduction in Unitrust Amount

Sec. 20. The unitrust amount may not be reduced for expenses that would be deducted from income if the trust were not a total return unitrust.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-21. Adjusting Net Fair Market Values of Assets

Sec. 21. For purposes of section 16 of this chapter, the net fair market values of the assets held in trust on the first business day of a proper valuation year shall be adjusted to reflect any:
(1) reduction, in the case of a distribution or payment; or
(2) increase, in the case of a receipt;
for the prior valuation year as if the distribution, payment, or receipt had occurred on the first day of the prior valuation year.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-22. Prorating Unitrust Amount in Short Year

Sec. 22. (a) As used in this section, "short year" refers to a part of a calendar year that:
(1) begins when the interest of the current beneficiary or class of current beneficiaries begins; or
(2) ends when the interest of the current beneficiary or class of beneficiaries ends.
(b) The trustee shall prorate the unitrust amount on a daily basis in a short year.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-23. Unitrust Amount's Satisfying Tax Law Requirement of Preserving Tax Benefit

Sec. 23. (a) This section applies to the following trusts:
(1) A trust for which a marital deduction has been taken for federal tax purposes during the lifetime of the spouse for whom the trust was created under Section 2056 or 2523 of the Internal Revenue Code.
(2) A trust to which the generation-skipping transfer tax due under Section 2601 of the Internal Revenue Code does not apply by reason of any effective date or transition rule.
(b) To the extent necessary to satisfy a tax law requirement or to preserve a tax benefit, the unitrust amount may not be less than the net income of the trust. Net income of the trust shall be determined as if the trust were not a unitrust.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-24. Construing the Governing Instrument

Sec. 24. After the income trust is converted to a total return unitrust under this chapter, both of the following apply:
(1) The term "income" in the governing instrument means the unitrust amount plus any income from the trust assets excluded from the determination of net fair market value under sections 18 and 19 of this chapter.
(2) The trustee shall make regular distributions in accordance with the governing instrument construed in accordance with this chapter.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-25. Paying the Unitrust Amount

Sec. 25. (a) Except as provided in subsection (b), and unless otherwise provided by the governing instrument, the unitrust amount shall be considered to have been paid from net income. The net income of the trust shall be determined as if the trust were not a unitrust.
(b) To the extent that:
(1) net income is insufficient to pay the unitrust amount, the unitrust amount shall be considered to have been paid from net realized short term capital gains;
(2) net income and net realized short term capital gains are insufficient to pay the unitrust amount, the unitrust amount shall be considered to have been paid from net realized long term capital gains; and
(3) net income and net realized short term and net long term capital gains are insufficient to pay the unitrust amount, the unitrust amount shall be considered to have been paid from the principal of the trust.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 15. Total Return Unitrusts › 30-2-15-26. Immunity of Trustee

Sec. 26. (a) A trustee who in good faith acts or fails to act under section 9 of this chapter is not liable to any person affected by the action or inaction, regardless of whether the person:
(1) received written notice as provided in section 10 of this chapter; and
(2) was under legal disability at the time of the delivery of the notice.
(b) The exclusive remedy of a person affected by the action or inaction of a trustee is to obtain an order of the court having jurisdiction of the trust that directs the trustee to take an action described in section 9 of this chapter.
As added by P.L.3-2003, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 16. Payroll Savings Plan Administration › 30-2-16-1. "Participant"

Sec. 1. As used in this chapter, "participant" means an individual who has accumulated a balance of funds with a payroll savings plan administrator through a payroll savings plan.
As added by P.L.141-2005, SEC.27.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 16. Payroll Savings Plan Administration › 30-2-16-2. "Payroll Savings Plan"

Sec. 2. As used in this chapter, "payroll savings plan" means a method provided by an employer to the employer's employees for the voluntary purchase of United States savings bonds on a regular schedule through the designation of an amount to be deducted each pay period until a sufficient amount accumulates to pay the purchase price of at least one (1) United States savings bond.
As added by P.L.141-2005, SEC.27.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 16. Payroll Savings Plan Administration › 30-2-16-3. "Payroll Savings Plan Administrator"

Sec. 3. As used in this chapter, "payroll savings plan administrator" means an organization that:
(1) has been qualified by the Federal Reserve Bank or the Bureau of the Public Debt under 31 CFR Part 317 to sell United States savings bonds; and
(2) operates payroll savings plans on behalf of employers for the purchase of United States savings bonds.
As added by P.L.141-2005, SEC.27.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 16. Payroll Savings Plan Administration › 30-2-16-4. "Static Balance"

Sec. 4. As used in this chapter, "static balance" means an amount held by a payroll savings plan administrator for a participant who:
(1) is not making allotments of payroll deductions to the payroll savings plan administrator; but
(2) has not terminated the individual's directions to the participant's employer or the employer's payroll savings plan administrator to purchase United States savings bonds for the individual when a sufficient balance accumulates to pay the purchase price.
As added by P.L.141-2005, SEC.27.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 16. Payroll Savings Plan Administration › 30-2-16-5. Static Balance Administration Services; Reimbursement of Administrator

Sec. 5. Subject to this chapter, a payroll savings plan administrator is entitled to reimbursement from a static balance for reasonable expenses incurred in the performance of static balance administration services beginning with the year after the participant ceases to make allotments of payroll deductions to the payroll savings plan administrator.
As added by P.L.141-2005, SEC.27.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 16. Payroll Savings Plan Administration › 30-2-16-6. Applicability of Reimbursement Provision

Sec. 6. Section 5 of this chapter applies only to an account in which the static balance does not exceed fifty dollars ($50).
As added by P.L.141-2005, SEC.27.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 16. Payroll Savings Plan Administration › 30-2-16-7. Static Balance Accounts Reportable as Unclaimed Property; Inapplicability of Reimbursement Provisions

Sec. 7. Section 5 of this chapter does not apply to accounts containing a static balance that would otherwise be reported to the state under IC 32-34-1.5-18 as Indiana property.
As added by P.L.141-2005, SEC.27. Amended by P.L.141-2021, SEC.17.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 2. General Provisions › Chapter 16. Payroll Savings Plan Administration › 30-2-16-8. Static Balance Account; Maximum Monthly Charge

Sec. 8. The maximum charge that may be imposed on an account with a static balance is one dollar ($1) per month.
As added by P.L.141-2005, SEC.27.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 3. Miscellaneous Provisions › Chapter 3. Bond of Fiduciary in Judicial Sale › 30-3-3-1. Order of Court; Time

Sec. 1. In any case where real estate is to be sold under the orders of any court of competent jurisdiction, and where the law requires that a bond be given for the faithful accounting of all money which may come into the custody and possession of the guardian, trustee, receiver, commissioner or other person appointed by the court to make such sale, it shall not be necessary for such guardian, trustee, receiver, commissioner or other person to execute such bond until a sale of such real estate has been ordered by the court having jurisdiction, or until such time as the court, in its discretion, may order and approve for the safeguarding of such assets.
Formerly: Acts 1937, c.178, s.1.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 3. Miscellaneous Provisions › Chapter 4. Relinquishment of Certain Charitable Trusts › 30-3-4-1. Application of Chapter; Home for Indigent Women, Worthy Poor, or Orphaned Children

Sec. 1. Notwithstanding IC 30-4-2-2 and IC 30-4-3-33, this chapter applies whenever a county that has been given, devised, or bequeathed money or property in trust for the purpose of establishing and maintaining a home for indigent women, worthy poor, or orphan children, and the board of commissioners of the county has been named as trustee by the donor of the property or money.
[Pre-Local Government Recodification Citation: 17-2-19-1 part.]
As added by Acts 1980, P.L.8, SEC.143. Amended by P.L.238-2005, SEC.18.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 3. Miscellaneous Provisions › Chapter 4. Relinquishment of Certain Charitable Trusts › 30-3-4-2. Determination by Board of Commissioners to Relinquish Trust

Sec. 2. If the board of commissioners determines:
(1) that the amount of money or property given, devised, or bequeathed is or will be inadequate to carry out the trust without an additional appropriation from the county; and
(2) that the county will not be substantially benefited by the administration of the trust;
then the board shall relinquish the trust. The title to any money and property so given, devised, or bequeathed then vests in the legal heirs of the donor or testator according to the provisions of IC 29 concerning intestate succession.
[Pre-Local Government Recodification Citation: 17-2-19-1 part.]
As added by Acts 1980, P.L.8, SEC.143.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 3. Miscellaneous Provisions › Chapter 4. Relinquishment of Certain Charitable Trusts › 30-3-4-3. Certifying Transcript of Finding; Recording

Sec. 3. The auditor of a county in which the board of commissioners makes a finding under this chapter affecting the title to real estate shall immediately certify a transcript of the finding to the county recorder of the county in which the real estate so affected is located. The county recorder shall then have the transcript recorded in the deed record of the county.
[Pre-Local Government Recodification Citation: 17-2-19-2.]
As added by Acts 1980, P.L.8, SEC.143.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 1. General Provisions › 30-4-1-1. Definition of "Trust"; Relationships Excluded From This Article; Transferability of Employee Benefit Trust

Sec. 1. (a) A trust is a fiduciary relationship between a person who, as trustee, holds title to property and another person for whom, as beneficiary, the title is held.
(b) Subject to IC 30-4-2-8, the same person may be both the trustee and a beneficiary.
(c) The rules of law contained in this article do not apply to:
(1) trusts created by operation of law;
(2) business trusts (as defined in IC 23-5-1);
(3) security instruments and creditor arrangements;
(4) voting trusts;
(5) religious, educational, and cultural institutions, created in other than trust form, except with respect to the application of IC 30-4-5-18 through IC 30-4-5-23 as those sections relate to the maintenance of federal income tax exemption privileges to which an institution is entitled;
(6) corporations and other entities governed by IC 23-17, except with respect to IC 30-4-5-18 through IC 30-4-5-23 as those sections relate to the maintenance of federal income tax exemption privileges to which a corporation or other entity is entitled;
(7) except as provided in this article for trusts for a benevolent public purpose and as provided in the Indiana uniform prudent investor act (IC 30-4-3.5):
(A) prepaid funeral plans;
(B) trusts for the care and upkeep of cemeteries; and
(C) agreements to furnish funeral services; and
(8) trusts created or authorized by statute other than this article.
(d) IC 30-4-3-2(a) applies to an employee benefit trust that meets the requirements set forth in IC 30-4-3-2(c). However, no other provision of this article applies to an employee benefit trust.
Formerly: Acts 1971, P.L.416, SEC.2; Acts 1972, P.L.11, SEC.12. As amended by P.L.287-1987, SEC.1; P.L.41-2000, SEC.1; P.L.61-2008, SEC.12.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 1. General Provisions › 30-4-1-1.5. Ic 30-2-4 and Ic 30-2-5 Not Repealed

Sec. 1.5. This article does not repeal:
(1) IC 30-2-4 (the Uniform Fiduciaries Act); or
(2) IC 30-2-5 (the Uniform Act for the Simplification of Fiduciary Security Transfers).
As added by P.L.1-1989, SEC.60.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 1. General Provisions › 30-4-1-3. Application and Interpretation of Rules of Law and Terms of Trust

Sec. 3. (Application and Interpretation of the Rules of Law and the Terms of the Trust)
The rules of law contained in this article shall be interpreted and applied to the terms of the trust so as to implement the intent of the settlor and the purposes of the trust. If the rules of law and the terms of the trust conflict, the terms of the trust shall control unless the rules of law clearly prohibit or restrict the article which the terms of the trust purport to authorize.
Formerly: Acts 1971, P.L.416, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 1. General Provisions › 30-4-1-4. Application of Article to Preexisting Trusts; Application of Amendments to Preexisting Trusts

Sec. 4. (a) Except as provided elsewhere in this article, the rules of law contained in this article shall apply to all trusts created prior to September 2, 1971, unless to do so would:
(1) adversely affect a right given to any beneficiary;
(2) give a right to any beneficiary which the beneficiary was not intended to have when the trust was created;
(3) impose a duty or liability on any person which was not intended to be imposed when the trust was created; or
(4) relieve any person from any duty or liability imposed by the terms of the trust or under prior law.
(b) Except as provided elsewhere in this article, an amendment to the rules of law contained in this article applies to all trusts created prior to the effective date of the applicable amendment unless to do so would:
(1) adversely affect a right given to any beneficiary;
(2) give a right to any beneficiary that the beneficiary was not intended to have when the trust was created;
(3) impose a duty or liability on any person that was not intended to be imposed when the trust was created; or
(4) relieve any person from any duty or liability imposed by the terms of the trust or under prior law.
Formerly: Acts 1971, P.L.416, SEC.2. As amended by Acts 1982, P.L.171, SEC.117; P.L.149-2012, SEC.11.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 1. General Provisions › 30-4-1-5. Construction of Pronouns

Sec. 5. (Construction of Pronouns)
A pronoun used in this article may be construed, unless the context requires otherwise, without regard to gender or whether the person or thing to which it refers is animate or inanimate.
Formerly: Acts 1971, P.L.416, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 1. General Provisions › 30-4-1-6. Construction of Singular Number

Sec. 6. (Construction of Singular Number)
Any word appearing in the singular number in this article may be construed as plural, unless the context requires otherwise.
Formerly: Acts 1971, P.L.416, SEC.2.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 1. General Provisions › 30-4-1-7. Trust Code Study Commission Report

Sec. 7. The report of the Trust Code Study Commission made according to IC 2-5-11 (repealed) may be consulted by the courts to determine the reasons, purpose and policies of this article, and may be used as a guide to its construction and application.
Formerly: Acts 1971, P.L.416, SEC.2. As amended by P.L.1-2009, SEC.153.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 1. General Provisions › 30-4-1-8. Effect of Requirement of Exercising Power of Appointment by Reference

Sec. 8. If a trust creating a power of appointment expressly requires that the power be exercised by a reference, an express reference, or a specific reference to the power or its source, it is presumed that the settlor's intention, in requiring that the grantee exercise the power by making reference to the particular power or to the creating instrument, was to prevent an inadvertent exercise of the power.
As added by P.L.252-2001, SEC.30.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 1. General Provisions › 30-4-1-9. Specific Indication of Power of Appointment Required

Sec. 9. A trust shall not operate as to the exercise of a power of appointment, which the settlor may have with respect to any real or personal property, unless by its terms the trust specifically indicates that the settlor intended to exercise the power.
As added by P.L.252-2001, SEC.31.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 1. General Provisions › 30-4-1-10. Distribution Under Laws of Intestate Succession When Manner Not Specified

Sec. 10. If a distribution in favor of "descendants", "issue", or "heirs of the body" does not specify the manner in which the property is to be distributed among the class members, the property is distributed among the class members who are living when the distribution is to take effect in possession or enjoyment, in such shares they would receive, under the applicable law of intestate succession, as if the designated ancestor had then died intestate, unmarried, and owning the subject matter of the distribution.
As added by P.L.252-2001, SEC.32.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 1. General Provisions › 30-4-1-11. Choice of Law

Sec. 11. The meaning and legal effect of a distribution under a trust shall be determined by the law of the state selected by the settlor in the trust, unless the application of that law is contrary to the public policy of this state.
As added by P.L.252-2001, SEC.33.