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.
Last modified: May 27, 2006