Payment of unitrust amount. (i) In general. A qualified unitrust interest is an irrevocable right to receive pay- ment periodically, but not less fre- quently than annually, of a fixed per- centage of the net fair market value of the trust assets, determined annually. For rules relating to computation of the net fair market value of the trust assets see § 25.2522(c)–3(c)(2)(vii). The unitrust amount must be payable to (or for the benefit of) the holder of the unitrust interest at least annually. A right of withdrawal, whether or not cu- mulative, is not a qualified unitrust in- terest. Issuance of a note, other debt instrument, option, or other similar fi- nancial arrangement, directly or indi- rectly, in satisfaction of the unitrust amount does not constitute payment of the unitrust amount.
Payment of unitrust amount. In each taxable year of the trust during the unitrust period, the Trustee shall pay to [4] [a permissible recipient] ("the Initial Recipient") until the Initial Recipient's death, and thereafter to [5] [a permissible recipient] ("the Successor Recipient"), a unitrust amount equal to __ [a number no less than 5 and no more than 50] percent of the net fair market value of the assets of the trust valued as of the first day of each taxable year of the trust ("the valuation date"). The first day of the unitrust period shall be the date property is first transferred to the trust and the last day of the unitrust period shall be the date of the death of the survivor of the Initial Recipient and the Successor Recipient. The unitrust amount shall be paid in equal quarterly installments at the end of each calendar quarter from income and, to the extent income is not sufficient, from principal. Any income of the trust for a taxable year in excess of the unitrust amount shall be added to principal. If, for any year, the net fair market value of the trust assets is incorrectly determined, then within a reasonable period after the correct value is finally determined, the Trustee shall pay to the Initial Recipient or the Successor Recipient (in the case of an undervaluation) or receive from the Initial Recipient or the Successor Recipient (in the case of an overvaluation) an amount equal to the difference between the unitrust amount(s) properly payable and the unitrust amount(s) actually paid.
Payment of unitrust amount. The Unitrust Amount shall be paid in equal -------------------------- quarterly amounts on the last business day of each calendar quarter, from income and, to the extent that income is not sufficient, from Trust principal. Any income of the Trust for a taxable year in excess of the Unitrust Amount shall be added to principal. The obligation to pay the Unitrust Amount to the Income Beneficiary(ies) shall commence on the date of the transfer of property to the Trust. Notwithstanding any existing or hereafter enacted state law, no amount other than the Unitrust Amount may be paid to or for the use of any person or organization other than an organization described in each of Section 170(b)(1)(A), Section 170(c), Section 2055(a) and Section 2522(a) of the Code. However, an amount shall not be deemed to be paid to or for the use of any person other than an organization described in the aforesaid Code sections if the amount is transferred for full and adequate consideration.
