A trust that provides for a fixed percentage payout in excess of five percent (5%) per year is considered an express total return unitrust that pays out a fixed percentage of five percent (5%) per year and pays out principal to the extent that the fixed percentage payout exceeds five percent (5%) per year.
N.C. Gen. Stat. § 37A-1-104.26
Unitrust amount in excess of a five percent payout
Known as the Uniform Principal and Income Act
The act spans §§ 37A-1-101 to 37A-1-105 (19 sections).
2005-244, s. 6.
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.