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.
Last modified: May 27, 2006