A. The authorized trustee shall not distribute the principal of a trust under Section 3 or 4 of this act¹ in a manner that would prevent a contribution to that trust from qualifying for or that would reduce the exclusion, deduction or other federal tax benefit that was originally claimed for that contribution, including:

B. Notwithstanding subsection A of this section, an authorized trustee may distribute the principal of a first trust to a second trust regardless of whether the settlor is treated as the owner of either or both trusts under the Internal Revenue Code, 26 U.S.C., Sections 671 through 679, as amended.

C. If S corporation stock is held in trust, an authorized trustee shall not distribute all or part of that stock under Section 3 or 4 of this act to a second trust that is not a permitted shareholder under the Internal Revenue Code, 26 U.S.C., Section 1361(c)(2), as amended.

D. If an interest in property that is subject to the minimum distribution rules of the Internal Revenue Code, 26 U.S.C., Section 401(a)(9), as amended, is held in trust, an authorized trustee shall not distribute the trust's interest in the property to a second trust under Section 3 or 4 of this act if the distribution would shorten the minimum distribution period applicable to the property.