the internal income of the separate fund exceeds payments made from the separate fund to the trust during the accounting period. (G) If a trustee cannot determine the internal income of a separate fund but can determine the value of the separate fund, the internal income of the separate fund is deemed to equal four percent of the to the most recent statement fund’s value, according of value preceding the beginning of the accounting period. If the trustee can determine neither the internal income of the separate fund nor the the internal income of the fund is fund’s value, deemed to equal the product of the interest rate and the present value of the expected future payments, as determined under Section 7520 of the Internal Revenue Code of 1986, as amended, for the month preceding the accounting period for which the computation is made. (H)(E) This section does not apply to payments subject to Section 627919.” Commissioners’ on Uniform Laws Comment Marital deduction requirements. When an IRA or other retirement is payable to a marital deduction arrangement (a “plan”) trust, the IRS treats the plan as a separate property interest that itself must qualify for the marital deduction. IRS Revenue Ruling 200626 said that, as written, Section 409 does not cause a trust to qualify for the Revenue Ruling 200626 was IRS’ safe harbors. limited in scope to certain situations involving IRAs and defined contribution retirement plans. Without necessarily agreeing with the position in that ruling, the revision to this section is IRS’ designed to satisfy the safe harbor and to address concerns IRS’ that might be raised for similar assets. No IRS pronouncements have addressed the scope of Code § 2056(b)(7)(C). Subsection (F) requires the trustee to demand certain distributions if the surviving spouse so requests. The safe harbor of Revenue Ruling 200626 requires that the surviving spouse be separately entitled to demand the income (without regard to fund’s the income from the other assets) and the income from the trust’s other assets (without regard to the income). In any event, fund’s the surviving spouse is not required to demand that the trustee distribute all of the income from the fund or from other trust fund’s assets. Treas. Reg. § 20.2056(b)5(f)(8).
the internal income of the separate fund exceeds payments made from the separate fund to the trust during the accounting period. (G) If a trustee cannot determine the internal income of a separate fund but can determine the value of the separate fund, the internal income of the separate fund is deemed to equal four percent of the fund’s value, according to the most recent statement of value preceding the beginning of the accounting period. If the trustee can determine neither the internal income of the separate fund nor the fund’s value, the internal income of the fund is deemed to equal the product of the interest rate and the present value of the expected future payments, as determined under Section 7520 of the Internal Revenue Code of 1986, as amended, for the month preceding the accounting period for which the computation is made. (H)(E) This section does not apply to payments subject to Section 627919.” Commissioners’ on Uniform Laws Comment Marital deduction requirements. When an IRA or other retirement arrangement (a “plan”) is payable to a marital deduction trust, the IRS treats the plan as a separate property interest that itself must qualify for the marital deduction. IRS Revenue Ruling 200626 said that, as written, Section 409 does not cause a trust to qualify for the IRS’ safe harbors. Revenue Ruling 200626 was limited in scope to certain situations involving IRAs and defined contribution retirement plans. Without necessarily agreeing with the IRS’ position in that ruling, the revision to this section is designed to satisfy the IRS’ safe harbor and to address concerns that might be raised for similar assets. No IRS pronouncements have addressed the scope of Code § 2056(b)(7)(C). Subsection (F) requires the trustee to demand certain distributions if the surviving spouse so requests. The safe harbor of Revenue Ruling 200626 requires that the surviving spouse be separately entitled to demand the fund’s income (without regard to the income from the trust’s other assets) and the income from the other assets (without regard to the fund’s income). In any event, the surviving spouse is not required to demand that the trustee distribute all of the fund’s income from the fund or from other trust assets. Treas. Reg. § 20.2056(b)5(f)(8).