(a) A unitrust policy must provide the method for determining the fair market value of an asset for the purpose of determining the unitrust amount, including: (1) the frequency of valuing the asset, which need not require a valuation in every period; and(2) the date for valuing the asset in each period in which the asset is valued.(b) Except as otherwise provided in § 28-77-309(b)(2), a unitrust policy may provide methods for determining the amount of the net fair market value of the trust to take into account in determining the applicable value, including: (1) obtaining an appraisal of an asset for which fair market value is not readily available;(2) exclusion of specific assets or groups or types of assets;(3) other exceptions or modifications of the treatment of specific assets or groups or types of assets;(4) identification and treatment of cash or property held for distribution;(5) use of: (A) an average of fair market values over a stated number of preceding periods; or(B) another mathematical blend of fair market values over a stated number of preceding periods;(6) a limit on how much the applicable value of all assets, groups of assets, or individual assets may increase ther mathematical blend of fair market values over a stated number of preceding periods;(6) a limit on how much the applicable value of all assets, groups of assets, or individual assets may increase over: (A) the corresponding applicable value for the preceding period; or(B) a mathematical blend of applicable values over a stated number of preceding periods;(7) a limit on how much the applicable value of all assets, groups of assets, or individual assets may decrease below:(A) the corresponding applicable value for the preceding period; or(B) a mathematical blend of applicable values over a stated number of preceding periods;(8) the treatment of accrued income and other features of an asset which affect value; and(9) determining the liabilities of the trust, including treatment of liabilities to conform with the treatment of assets under paragraphs (1) through (8).Added by Act 2021, No. 1088,§ 2, eff. 1/1/2022.
Arkansas Legal Code