(a) This section does not apply to a charitable remainder unitrust as defined by Section 664(d), Internal Revenue Code of 1986 (26 U.S.C. Section 664), as amended.
(b) In this section:
(1) "Unitrust" means a trust the terms of which require distribution of a unitrust amount.
(2) "Unitrust amount" means a distribution mandated by the terms of a trust in an amount equal to a fixed percentage of not less than three or more than five percent per year of the net fair market value of the trust's assets, valued at least annually. The unitrust amount may be determined by reference to the net fair market value of the trust's assets in one year or more than one year.
(c) Distribution of the unitrust amount is considered a distribution of all of the income of the unitrust and shall not be considered a fundamental departure from applicable state law. A distribution of the unitrust amount reasonably apportions the total return of a unitrust.
(d) Unless the terms of the trust specifically provide otherwise, a distribution of the unitrust amount shall be treated as first being made from the following sources in order of priority:
(1) from net accounting income determined as if the trust were not a unitrust;
(2) from ordinary accounting income not allocable to net accounting income;
(3) from net realized short-term capital gains;
(4) from net realized long-term capital gains; and
(5) from the principal of the trust estate.