Appendix Form #16

• Author: Jerold I. Horn
• Profession: Lawyer
• Pages: 851-872

851

[Irrevocable Trust. Settlor is married. Designed to hold insurance on joint lives of settlor

and spouse of settlor. Crummey powers. Contingent payment of taxes. Creates manage-

ment-style trusts until stated ages. If the settlor survives his or her spouse, the form is

intended to permit an allocation of GST exemption upon the death of the settlor with

the effect, by means of a qualied severance, of producing an inclusion ratio of zero for

a disposition, one year after the death of the settlor, to or for a child of a child who is

living at the creation of the insurance trust but who is not living one year after the death

of the settlor.]

Irrevocable Trust Agreement

Made November 1, 2017.

Article I

Purpose

I, EDWARD S. ZIEGLER, of Peoria, Illinois, transfer to MARY Q. ZIEGLER, 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 Until Death of Survivor of My Wife and Me

Until the death of the survivor of my wife and me, 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

Appendix Form #16

852 Appendi x Form #16

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

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 my wife shall have no power that would cause inclusion of any of the

trust estate in the gross estate of my wife for purposes of determining the

United States estate tax payable because of the death of my wife 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