1. (a) This section applies to a trust described in section 2(1) of this chapter.
2. (b) When a trustee gives notice of a proposed action under section 10(a)(1)(A) of this chapter to convert a trust to a unitrust, the trustee must include the unitrust rate in the notice of proposed action.

3. (c) If:

   1. (1) the trustee proposes a unitrust rate of four percent (4%) in the notice of proposed action; and

   2. (2) no beneficiary entitled to notice of the proposed action makes a written objection to the unitrust rate under section 10(a)(1)(B) of this chapter;

      the unitrust rate must be four percent (4%).

4. (d) A trust may have a unitrust rate that represents a reasonable current return from the trust and best reflects the goals of the trust and the intent of the settlor or testator, but that is not less than three percent (3%) or more than five percent (5%), if the rate is:

   1. (1) agreed upon in writing by the trustee and the beneficiaries entitled to notice under section 11 of this chapter; or
   2. (2) ordered by the court having jurisdiction of the trust.

As added by P.L.3-2003, SEC.2. Amended by P.L.33-2019, SEC.11.