Section 26-51-446 - Long-term intergenerational security(a)(1) All distributions of funds other than principal from the long-term intergenerational trust shall be taxable as provided in the Income Tax Act of 1929, § 26-51-101 et seq.(2) All distributions from the long-term intergenerational trust shall be deemed principal until all contributions of principal have been withdrawn.(b)(1) In addition to any income tax imposed for distributions from the long-term intergenerational trust as provided in subsection (a) of this section, there is hereby imposed a twenty percent (20%) penalty on all distributions from the long-term intergenerational trust in violation of this section or the Long-Term Intergenerational Security Act of 1995, § 28-72-501 et seq.(2) The penalty shall be collected by the Department of Finance and Administration and shall be deposited into the State Treasury as general revenue.(c) A beneficiary must file a copy of the long-term intergenerational security trust agreement with his or her income tax return for each taxable year the beneficiary claims the tax benefits provided in this section and the Long-Term Intergenerational Security Act of 1995, § 28-72-501 et seq.(d) Upon the death of the beneficiary, all funds remaining in the long-term intergenerational security trust shall be distributed to the beneficiary's estate, and all undistributed income shall be included in the beneficiary's final tax return.Acts 1995, No. 1303, §§ 4, 5, 7, 8.