§ 18-4-23 - Charitable remainder trusts. - Rhode Island Statutes

SECTION 18-4-23

   § 18-4-23  Charitable remainder trusts.– (a) As used in this section the term "charitable remainder trust" has themeaning ascribed to that term in § 664 of the Internal Revenue Code, 26U.S.C. § 664, and in §§ 1.664-1 through 1.664-4 of proposedregulations dealing with charitable remainder trusts, published in the federalregister on September 18, 1971, on behalf of the secretary of the treasury ofthe United States or the secretary's delegate.

   (b) The superior court shall have jurisdiction:

   (1) In the case of property transferred to a trust createdbefore August 1, 1969, whose governing instrument provides that an organizationdescribed in § 170(c) of the Internal Revenue Code, 26 U.S.C. §170(c), receives an irrevocable remainder interest in the trust, to enterjudgment whereunder, in order that the trust qualify as a charitable remaindertrust, the transferred property and any undistributed income from it is to besevered and placed in a separate trust, within the meaning of §1.664-1(g)(2) of the proposed regulations.

   (2) In the case of a trust created subsequent to July 31,1969, whose governing instrument provides that an organization referred to in26 U.S.C. § 170(c) receives an irrevocable remainder interest in thetrust, to enter judgment whereunder, in order that the trust qualify as acharitable remainder trust, the governing instrument is to be amended byincluding in the instrument the provisions required by the proposed regulationsto be included; deleting from the instrument the provisions prohibited by theproposed regulations from being included; and, to the extent found by the courtto be in furtherance of the intention of the creator of the trust, includingprovisions permitted by the proposed regulations to be included.

   (c) The provisions of subsection (b) of this section shallnot apply to the extent that the superior court determines that the applicationwould be contrary to the terms of the instrument governing the trust and thatthe instrument may not properly be changed to conform to the proposedregulations.

   (d) All references to sections of the Internal Revenue Codeshall include future amendments to those sections and corresponding provisionsof future internal revenue laws; and all references to sections of proposedregulations shall include regulations dealing with charitable remainder trustsas finally adopted by the secretary of the treasury or the secretary's delegateand future amendments to those regulations.