[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR2634.310]

[Page 517-518]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
                CHAPTER XVI--OFFICE OF GOVERNMENT ETHICS
 
PART 2634_EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS, AND 
 
                  Subpart C_Contents of Public Reports
 
Sec. 2634.310  Trusts, estates, and investment funds.

    (a) In general. (1) Except as otherwise provided in this section, 
each financial disclosure report shall include the information required 
by this subpart about the holdings of and income from the holdings of 
any trust, estate, investment fund or other financial arrangement from 
which income is received by, or with respect to which a beneficial 
interest in principal or income is held by, the filer, his spouse, or 
dependent child.
    (2) No information, however, is required about a nonvested 
beneficial interest in the principal or income of an estate or trust. A 
vested interest is a present right or title to property, which carries 
with it an existing right of alienation, even though the right to 
possession or enjoyment may be postponed to some uncertain time in the 
future. This includes a future interest

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when one has a right, defeasible or indefeasible, to the immediate 
possession or enjoyment of the property, upon the ceasing of another's 
interest. Accordingly, it is not the uncertainty of the time of 
enjoyment in the future, but the uncertainty of the right of enjoyment 
(title and alienation), which differentiates a ``vested'' and a 
``nonvested'' interest.

    Note to paragraph (a): Nothing in this section requires the 
reporting of the holdings or income of a revocable inter vivos trust 
(also known as a ``living trust'') with respect to which the filer, his 
spouse or dependent child has only a remainder interest, whether or not 
vested, provided that the grantor of the trust is neither the filer, the 
filer's spouse, nor the filer's dependent child. Furthermore, nothing in 
this section requires the reporting of the holdings or income of a 
revocable inter vivos trust from which the filer, his spouse or 
dependent child receives any discretionary distribution, provided that 
the grantor of the trust is neither the filer, the filer's spouse, nor 
the filer's dependent child.

    (b) Qualified trusts and excepted trusts. (1) A filer should not 
report information about the holdings of or income from holdings of, any 
qualified blind trust (as defined in Sec. 2634.403) or any qualified 
diversified trust (as defined in Sec. 2634.404). For a qualified blind 
trust, a public financial disclosure report shall disclose the category 
of the aggregate amount of the trust's income attributable to the 
beneficial interest of the filer, his spouse, or dependent child in the 
trust. For a qualified diversified trust, a public financial disclosure 
report shall disclose the category of the aggregate amount of income 
with respect to such a trust which is actually received by the filer, 
his spouse, or dependent child, or applied for the benefit of any of 
them.
    (2) In the case of an excepted trust, a filer should indicate the 
general nature of its holdings, to the extent known, but will not 
otherwise need to report information about the trust's holdings or 
income from holdings. The category of the aggregate amount of income 
from an excepted trust which is received by or accrued to the benefit of 
the filer, his spouse, or dependent child shall be reported on public 
financial disclosure reports. For purposes of this part, the term 
``excepted trust'' means a trust:
    (i) Which was not created directly by the filer, spouse, or 
dependent child; and
    (ii) The holdings or sources of income of which the filer, spouse, 
or dependent child have no specific knowledge through a report, 
disclosure, or constructive receipt, whether intended or inadvertent.
    (c) Excepted investment funds. (1) No information is required under 
paragraph (a) of this section about the underlying holdings of or income 
from underlying holdings of an excepted investment fund as defined in 
paragraph (c)(2) of this section, except that the fund itself shall be 
identified as an interest in property and/or a source of income. Filers 
must also disclose the category of value of the fund interest held; 
aggregate amount of income from the fund which is received by or accrued 
to the benefit of the filer, his spouse, or dependent child; and value 
of any transactions involving shares or units of the fund.
    (2) For purposes of financial disclosure reports filed under the 
provisions of this part, an ``excepted investment fund'' means a widely 
held investment fund (whether a mutual fund, regulated investment 
company, common trust fund maintained by a bank or similar financial 
institution, pension or deferred compensation plan, or any other 
investment fund), if:
    (i)(A) The fund is publicly traded or available; or
    (B) The assets of the fund are widely diversified; and
    (ii) The filer neither exercises control over nor has the ability to 
exercise control over the financial interests held by the fund.
    (3) A fund is widely diversified if it holds no more than 5% of the 
value of its portfolio in the securities of any one issuer (other than 
the United States Government) and no more than 20% in any particular 
economic or geographic sector.

[57 FR 11808, Apr. 7, 1992; 57 FR 21854, May 22, 1992, as amended at 67 
FR 37967, May 31, 2002; 71 FR 28234, May 16, 2006]

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