Appendix Form #14

AuthorJerold I. Horn
ProfessionLawyer
Pages809-824
809
[Irrevocable Trust. Settlor is divorced. Designed to hold insurance on life of settlor. Crum-
mey powers. Contingent payment of taxes. Upon one year after death of settlor, outright
to descendants, per stirpes, of settlor who then are living.]
Irrevocable Trust Agreement
Made November 1, 2017.
Article I
Purpose
I, MARK W. RYAN, of Peoria, Illinois, transfer to CINDY D. RYAN, of Peoria,
Illinois, as Trustee, ten dollars and other consideration. The Trustee agrees to
administer this property, together with any additions and changes, according to
this instrument.
Article II
Disposition During My Life
During my life, the Trustee shall administer the trust estate as provided in this
Article.
Section 2.01. Lifetime Trust. The Trustee shall set the trust estate apart, in a sepa-
rate trust to be known as the “Lifetime Trust” and to be administered as provided
in this Section.
(A) Distributions. The Trustee shall pay to any one or more of my descen-
dants, without any duty of equalization, so much or all, if any, of the trust
estate as the Independent Trustee in its sole and absolute discretion deter-
mines to be advisable from time to time, considering or not considering
resources otherwise available, for any purpose or reason whatsoever, includ-
ing the termination of the trust.
(B) Right to Withdraw. Notwithstanding any other provision of this instru-
ment, the Trustee shall pay to each person (the “donee”) who is a descendant
of mine so much or all, if any, of the trust estate as the donee has a right to
withdraw according to paragraph (1) and directs in writing before the right
lapses according to paragraph (3).
(1) Whenever any donor makes a contribution to the Trustee, each donee
shall have the right to withdraw so much of the trust estate as has a value
Appendix Form #14
810 Appendix For m #14
equal to the value of the contribution to such extent as the contribution,
if given outright to the donee and gifts were split to the maximum extent
according to Section 2513(a) of the Code, would be excluded (according to
Section 2503(b) of the Code) from taxable gifts for purposes of determining
United States gift tax; provided, the value that the donee shall have a right
to withdraw because of the contribution shall not exceed the product of
(I) the value of the contribution and (II) a fraction of which the numerator
is the value that the donee would have a right to withdraw because of the
contribution if this provisory clause were absent and of which the denomi-
nator is the sum of the numerators that result from the application of this
sentence separately to each of the respective donees. Notwithstanding the
preceding portion of this paragraph (1), the donor by direction delivered
to the Trustee before or with any particular contribution may increase (to
such extent as all rights to withdraw arising because of the contribution
do not exceed the contribution) or decrease or eliminate any right to with-
draw that, absent the direction, would arise because of the contribution.
(2) No donee at any particular time shall have the right to withdraw
from any property subject to withdrawal any amount greater than (i) (a)
the amount (determined without regard to this sentence) that the donee
then can withdraw from the property divided by (b) the amount (deter-
mined without regard to this sentence) that all donees then can withdraw
from the property, multiplied by (ii) the value of the property at such time.
I intend that (i) each contribution shall qualify for an annual exclusion
as a present interest for purposes of determining United States gift tax
to such extent (if any) as the contribution generates rights to withdraw
according to subsection (1) of this subsection (B), (ii) I shall have no power
that would cause inclusion of any of the trust estate in my gross estate for
purposes of determining the United States estate tax payable because of
my death and (iii) this instrument shall be construed consistently with
these intentions.
(3) The right of the donee to withdraw shall lapse only upon the rst
to occur of
(a) The death of the donee; and
(b) To such extent as the lapses of the right of the donee during the
calendar year do not exceed the greater of (I) ve thousand dollars and
(II) ve percent of the value at the time of lapse of the property from
which the Trustee can satisfy the right, the last second of a calendar year
(except that no portion that has existed less than sixty days shall lapse
according to this clause (b)); provided, this clause (b) shall apply (i) to

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