ORS 130.232: Division of trust into separate shares or portions; legal effect.

(1) If the occurrence of an event, satisfaction of a condition or exercise of a power allows or creates an obligation for the trustee to divide a trust or any portion of a trust into separate shares or portions for the benefit of separate beneficiaries: (a) A separate share of a trust comes into existence at the earliest possible time that a trustee may reasonably determine, based upon the facts, that a separate economic interest exists for a beneficiary; (b) Each income beneficiary’s share resulting from the division of the trust will be deemed to have the beneficiary’s share of income based upon the beneficiary’s share of the distributable net income for the trust’s tax year relative to that of the other beneficiaries; (c) All of the terms of the trust instrument will be applied independently to each beneficiary’s share created pursuant to this section except as terms are specifically limited in the trust instrument; and (d) The trust or portion of the trust from which a beneficiary’s share originates will be deemed to terminate to the extent of the beneficiary’s share, subject only to the proper administration of the terminated trust occasioned by the terminating event, condition or exercise. (2) The provisions of this section are not elective and must be read so as to be consistent with section 663(c) of the Internal Revenue Code, as in effect on December 31, 2013. Application of this section shall apply for all tax years that the trust is in existence unless an event occurs, the result of which is that the terms of the trust prevail, in which case the requirements of appropriate trust administration may require and result in a different treatment than would otherwise result in accordance with the provisions of this section. [2013 c.529 §24; 2015 c.126 §1]