(1) A unitrust policy may:
(a) Provide methods and standards for:
(i) Determining the timing of distributions;
(ii) Making distributions in cash or in-kind or partly in cash and partly in-kind; or
(iii) Correcting an underpayment or overpayment to a beneficiary based on the unitrust amount if there is an error in calculating the unitrust amount;
(b) Specify sources and the order of sources, including categories of income for federal income tax purposes, from which distributions of a unitrust amount are paid; or
(c) Provide other standards and rules the fiduciary determines serve the interests of the beneficiaries.
(2) If a trust qualifies for a special tax benefit or a fiduciary is not an independent person:
(a) The unitrust rate established under RCW
11.104B.150 may not be less than three percent or more than five percent;
(b) The only provisions of RCW
11.104B.160 that apply are RCW
11.104B.160 (1) and (2)(a), (d), (e)(i), and (i);
(c) The only period that may be used under RCW
11.104B.170 is a calendar year under RCW
11.104B.170(1)(a); and