RSS Icon Twitter icon Facebook icon

Chapter 150: Trusts

150.040 Pooled Income Trust Fund

Bd. Min. 12-17-71, p. 36,153.

  1. Whereas the Curators of the University of Missouri, 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:
  2. 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.”
  3. Irrevocable Remainder to the Universities—Each donor transferring property to the pooled fund shall contribute an irrevocable remainder interest in such property to the University of Missouri as specified in the instrument of transfer in the form designated in Schedule B.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. 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 outstanding. The University shall pay all income assigned to such units of participation for the taxable year at convenient intervals but in no event later than 64 days after the close of the taxable year. The University shall not be obligated to prorate periodic income payments between the estate of a deceased beneficiary and a surviving beneficiary or beneficiaries. The income interest of any beneficiary shall terminate with the regular periodic income payment next preceding the date of such beneficiary’s death.
  13. Withdrawal of Property from Fund—Upon the termination of an income interest in the pooled fund the University shall sever and withdraw from the pooled fund (in cash, in kind, or partly in each) an amount equal to the value of the property upon which such income interest was based. The value of the property withdrawn shall be its value as of the valuation date next succeeding the date of the termination of the income interest.
  14. Definition of Income—For the purpose of this trust the term “income” has the same meaning as it does under Section 643(b) of the code and regulations thereunder. The term “income” shall mean net income after payment of any expenses for administering the trust. Such expenses shall include reasonable investment, management, custodian and like fees, but not trustee’s fees. The following shall be treated as principal and not as “income”:
    1. Gains and losses from the sale, exchange, redemption or other disposition of investments;
    2. Stock dividends, stock splits or similar distributions;
    3. Capital gain dividends of regulated investment companies (mutual funds);
    4. Liquidating distributions;
    5. Any other dividends or distributions not deemed taxable as income under the code.
          NOTE: If interest bearing securities are acquired at a premium over par or other stated value the premiums shall be amortized from income so as to restore the premium to principal.
  15. Trustees’ Powers —In addition to all other powers conferred on it by law and subject to paragraphs 4 and 5 the University in the administration of this trust shall have the following powers:
    1. To retain indefinitely any investments and to invest and to reinvest in stocks, shares and obligations of corporations, of unincorporated associations or trusts and of investment companies or in any other kind of income producing personal or real property, notwithstanding the fact that any or all of the investments made or retained are of a character or size which but for this express authority would not be considered proper for trustees;
    2. To sell, exchange, lease and make contracts concerning the trust property; to give options therefore; to execute deeds, transfers, leases and other instruments of any kind;
    3. To hold bonds, shares or other securities in bearer form or in the name of the University or in the name of a nominee without indication of any fiduciary capacity;
    4. To give general or special proxies or powers of attorney for voting or acting in respect of shares or securities which may be discretionary and with power of substitution; to deposit shares or securities with or transfer them to protective committees or similar bodies; to join in any reorganization; and to pay assessments or subscriptions called for in connection with shares or securities held by the University;
    5. To employ investment counsel, custodians of trust property, brokers, agents and attorneys;
    6. To receive additions to the trust hereunder and to administer the same under the provisions hereof.
  16. Governing Law —By executing this instrument the University intends to qualify the trust as a pooled income fund within the meaning of Section 642(c)(5) of the code and regulations pursuant thereto. The provisions hereof shall be interpreted in accordance with the regulations and rulings promulgated by the Internal Revenue Service with respect to such funds and contributions to them. Otherwise this instrument shall be governed by the laws of the State of Missouri and its terms are made expressly subject to the provisions of Sections 456.230 and 352.245, Revised Statutes of Missouri, 1969.
  17. Purpose—The purpose of this trust is to create financial reserves for the University while at the same time affording reasonable returns to individual donors and their designated beneficiaries. In order to serve the purpose of this trust the University shall establish and maintain policies from time to time setting forth the minimum ages and number of lives of individual beneficiaries and the minimum amounts which may be donated for gifts to the pooled fund.
  18. Limited Power to Amend—The University shall have the power acting alone to amend this instrument in any manner necessary for the sole purpose of insuring that this trust shall qualify as a pooled income fund within the meaning of Section 642(c)(5) of the code and regulations issued pursuant thereto.

In witness whereof the University has caused these presents to be executed by its duly authorized officer this day of , 1971.

The Curators of the University

By

Schedule A: Instrument for Transfer of Property to University of Missouri Pooled Income Trust Fund

(Income Reserved to Donor for Life)

  1. The undersigned Donor hereby irrevocably transfers to The Curators of the University of Missouri, a public corporation under the laws of the State Missouri, herein referred to as the University, as trustee, the following described property:
  2. The University shall hold such property pursuant to the provisions of the University of Missouri Pooled Income Trust Fund, established by declaration of trust dated , 19 , the applicable terms of which declaration of trust are hereby incorporated by reference and made a part hereof.
  3. The Donor hereby retains for himself for and during his lifetime an income interest in the pooled income trust fund.
  4. Upon termination of the income interest specified in paragraph 3 above, the remainder interest shall be transferred from the pooled fund to the University free of this trust.

Dated this day of , 19 .

Donor

Accepted for the Curators of the University of Missouri, Trustee

By

Schedule B: Instrument for Transfer of Property to University of Missouri Pooled Income Trust Fund

(Income Reserved for the Donor and Another)

  1. The undersigned Donor hereby irrevocably transfers to The Curators of the University of Missouri, a public corporation under the laws of the State of Missouri, herein referred to as the University, as trustee, the following described property:
  2. The University shall hold such property pursuant to the provisions of the University of Missouri Pooled Income Trust Fund, established by declaration of trust dated , 19 , the applicable terms of which declaration of trust are hereby incorporated by reference and made a part hereof.
  3. The Donor hereby retains for himself for and during his lifetime an income interest in the pooled income trust fund. On the death of the Donor the Donor’s income interest in the pooled income trust shall be paid to for his or her lifetime.
    [In the event the Donor is not a beneficiary or income interests are to be enjoyed concurrently or concurrently and consecutively the wording of this paragraph must be modified in an appropriate manner.]
  4. The Donor reserves the right to revoke by his will the interest of any person designated in paragraph 3 above, any such revocation to be effective on the Donor’s death. In the event of any such revocation the next succeeding interest in the trust as described in this instrument shall vest immediately.
  5. Upon the termination of the income interest(s) specified in paragraph 3 above, the remainder interest shall be transferred from the pooled fund to the University free of this trust.

Dated this day of , 19 .

Donor

Accepted for The Curators of the University of Missouri, Trustee

By


Search Collected Rules: