(a) In the administration of any trust which is a 'private foundation,' as defined in § 509 of the Internal Revenue Code, a 'charitable trust,' as defined in § 4947(a)(1) of the Internal Revenue Code, or a 'split–interest trust,' as defined in § 4947(a)(2) of the Internal Revenue Code, the acts specified in this section are prohibited. (b) It is unlawful to engage in any act of 'self–dealing,' as defined in § 4941(d) of the Internal Revenue Code, which would cause any tax liability under § 4941(a) of the Internal Revenue Code. (c) It is unlawful to retain any 'excess business holdings,' as defined in § 4943(c) of the Internal Revenue Code, which would cause any tax liability under § 4943(a) of the Internal Revenue Code. (d) It is unlawful to make any investment which would jeopardize the carrying out of any exempt purposes under § 4944 of the Internal Revenue Code and cause any tax liability under § 4944(a) of the Internal Revenue Code. (e) It is unlawful to make any 'taxable expenditures,' as defined in § 4945(d) of the Internal Revenue Code, which would cause any tax liability under § 4945(a) of the Internal Revenue Code. ue Code. (e) It is unlawful to make any 'taxable expenditures,' as defined in § 4945(d) of the Internal Revenue Code, which would cause any tax liability under § 4945(a) of the Internal Revenue Code. (f) This section does not apply to any part of a split–interest trust which is not subject to the prohibitions applicable to private foundations because of the provisions of § 4947 of the Internal Revenue Code.
Maryland Legal Code