Chapter 150: Trusts

Chapter 150: Trusts / en 150.040 Pooled Income Trust Fund /ums/rules/collected_rules/financial/ch150/150.040_pooled_income_trust_fund 150.040 Pooled Income Trust Fund kuscheld <time datetime="2010-05-26T21:01:56+00:00" title="Wednesday, May 26, 2010 - 21:01">Wed, 05/26/2010 - 21:01</time> <div>Bd. Min. 12-17-71, p. 36,153. <ol class="upperalpha"> <li>Whereas the Curators of the ��, herein referred to as "The University," is a public corporation existing under the laws of the State of Missouri and is an organization described in Section 170(b)(1)(A) (other than in clauses (vii) or (viii) of the Internal Revenue Code of 1954); and     Whereas from time to time individuals desire to make gifts of property to the University and to retain an income interest therein for the life of one or more beneficiaries; and    Whereas the University wishes to encourage such gifts to it and to that end to establish a pooled income trust fund pursuant to the provisions of Section 642 (c)(5) of the Internal Revenue Code of 1954, herein referred to as "the code," and regulations interpreting that section.    Now therefore the University hereby declares that from the date of this instrument it holds the property described in Schedule A, attached hereto and by this reference made a part hereof, and any additional property transferred to the University pursuant to an instrument of transfer described in Schedule B, attached hereto, in trust for the following uses and purposes:</li> <li>Name of Trust -- This fund shall be known as the University of MIssouri Pooled Income Trust Fund and is hereafter referred to for convenience as "the pooled fund."</li> <li>Irrevocable Remainder to the Universities -- Each donor transferring property to the pooled fund shall contribute an irrevocable remainder interest in such property to the �� as specified in the instrument of transfer in the form designated in Schedule B.</li> <li>Designation of Income Beneficiaries -- Each donor transferring property to the pooled fund shall retain for himself an income interest or create an income interest for the life of one or more named beneficiaries living at the time of the transfer of the property to the pooled fund by the donor. In the event more than one beneficiary of an income interest is designated such beneficiaries may enjoy their shares of income concurrently, consecutively, or both concurrently and consecutively. The donor shall designate in the instrument of transfer, attached hereto as Schedule B, the names of the beneficiary or beneficiaries of income interests and the term or terms of the income interest or interests.</li> <li>Commingling of Property -- The property transferred to the pooled fund by each donor shall be commingled with, and invested or reinvested with, other property transferred to the pooled fund by other donors satisfying the requirements of this instrument, the provisions of Section 642(c)(5) of the code and regulations interpreting that Section. The pooled fund shall not include property transferred under arrangements other than those specified in this instrument and satisfying the said provisions of the code and regulations.</li> <li>Tax Exempt Securities Prohibited -- The property transferred to the pooled fund by any donor shall not include any securities, the income from which is exempt from tax under subtitle (A) of the code, and the University shall not accept for the pooled fund or invest any property of the pooled fund in any such securities.</li> <li>Control of the University Over the Fund -- The University may employ agents to assist it in the investment and reinvestment of the property constituting the pooled fund and in the administration of the pooled fund. But at all time the University shall act as trustee of the pooled fund and shall exercise control over the pooled fund.</li> <li>The University is Sole Trustee -- The University shall be the sole trustee of the pooled fund and no donor of property to the fund or individual beneficiary of the fund may ever serve as a trustee of the pooled fund.</li> <li>Taxable Year -- The taxable year of the pooled fund shall be the fiscal year period beginning on July 1 and ending on June 30. The first taxable year of the pooled fund shall begin on the effective date of this trust.</li> <li>Valuation -- The fair market value of all the property in the pooled fund shall be determined on the first day of the first taxable year and on the following dates in each taxable year: September 30, December 31, March 31 and June 30. In computing the fair market value of the assets of the pooled fund there shall be taken into account all accrued assets and liabilities, and there shall be excluded any undistributed income earned by or accrued to the pooled fund on a valuation date. Determinations of the fair market value of the assets of the pooled fund shall be consistent with customary fiduciary accounting practices, but in the case of any conflict statutes, regulations, and rulings applicable to pooled income funds shall prevail over customary fiduciary accounting practices.</li> <li>Participation Units -- On a transfer of property by a donor to the pooled fund one or more units of participation shall be assigned to the income interest or interests retained or created by the donor. The number of participation units shall be determined by dividing the fair market value of the property transferred by the fair market value of a participation unit in the fund at the time of such transfer. The fair market value of a participation unit in the fund at the time of such transfer shall be determined by dividing the fair market value of all property in the pooled fund at the time of the transfer by the number of units of participation then outstanding. The initial fair market value of a unit of participation in the pooled fund shall be determined by assigning units of participation to the fair market value of the property initially transferred to the pooled fund.     For a transfer by a donor to the pooled fund on a date other than a valuation date the fair market value of the property in the pooled fund at the time of such transfer shall be the average of the fair market values of the property in the pooled fund on the valuation dates next preceding and next succeeding the date of transfer. In determining the average, any property transferred to the pooled fund between such dates shall be excluded.</li> <li>Allocation and Payment of Income -- Every income beneficiary shall be assigned a proportionate share of the annual income earned by the pooled fund based upon the number of units of participation assigned to the beneficiary's interest in the pooled fund. The share of income allocated to each unit of participation shall be determined by dividing the income of the pooled fund for the taxable year by the outstanding number of units of participation at the end of the year, provided, however, that income shall be allocated to participation units outstanding during only part of the year based upon the period of time within the year such units are outs