Common use of Provisions with Regard to Generation Skipping Tax Clause in Contracts

Provisions with Regard to Generation Skipping Tax. A. Notwithstanding any other provision of this Trust Agreement: 1. If a trust created under this Trust Agreement (the "original trust") would otherwise be partially exempt from the then available federal estate tax Generation-Skipping Tax Exemption (hereinafter “GST Exemption”) effective at that time in accordance with the provisions of Section 2631 and such related provisions of Chapter 13 of the Internal Revenue Code of 1986 (the "Code") after the intended allocation of a GST Exemption to it, then, before such allocation and as of the relevant valuation date under Section 2642 of the Code with respect to such allocation, the Trustee may (but need not) create instead two separate trusts of equal or unequal value which shall be funded fractionally out of the available property, and which shall be identical in all other respects to the original trust, so that the allocation of GST Exemption can be made to one trust which will be entirely exempt from federal generation-skipping tax. The two trusts created under this Paragraph 2. If property which is held in, or is to be added or allocated to, a trust pursuant to this Trust Agreement is subject to different treatment for any reason for purposes of the generation-skipping tax under Chapter 13 of the Code, than other property being added or allocated to, or also held in, that trust, then the Trustee may (but need not) hold such property instead as a separate trust that is appropriately designated to distinguish it from the trust to which the property otherwise would have been allocated, but that is identical in all other respects to that trust. 3. It is the intent of the Settlor that the Trustee shall not be required to create or administer a trust under this Trust Agreement that is only partially exempt from generation- skipping taxes, or to commingle property subject to different treatment for generation-skipping tax purposes whether because the transferors with respect to the property are assigned to different generations or otherwise. The provisions of this Paragraph A. of this Section 1.4 are intended to enable the Trustee to avoid situations by empowering the Trustee to segregate Trust Property (i) that is entirely exempt B. To the extent it is consistent with the Trustee's fiduciary obligations, the Trustee, in making discretionary distributions of net income and principal from the related trusts referred to in Paragraph A. of this Section 1.4, shall take advantage of the opportunities provided by the creation of such related trusts to avoid or delay generation-skipping tax when making discretionary distributions, and to maximize the amount of Trust property that eventually may be distributed to the Settlor's grandchildren or more remote descendants without transfer tax of any kind at the termination of all trusts created under this Trust Agreement.

Provisions with Regard to Generation Skipping Tax. A. Notwithstanding any other provision of this Trust Agreement: 1. If a trust created under this Trust Agreement (the "original trust") would otherwise be partially exempt from the then available federal estate generation-skipping tax Generation-Skipping Tax Exemption (hereinafter “GST Exemption”) effective at that time in accordance with the provisions of Section 2631 and such related provisions of Chapter 13 of the Internal Revenue Code of 1986 (the "Code") after the intended allocation of a GST Exemption to it, then, before such allocation and as of the relevant valuation date under Section 2642 of the Code with respect to such allocation, the Trustee may (but need not) create instead two separate trusts of equal or unequal value which shall be funded fractionally out of the available property, and which shall be identical in all other respects to the original trust, so that the allocation of GST Exemption can be made to one trust which will be entirely exempt from federal generation-skipping tax. The two trusts created under this Paragraphallocation 2. If property which is held in, or is to be added or allocated to, a trust pursuant to this Trust Agreement is subject to different treatment for any reason for purposes of the generation-skipping tax under Chapter 13 of the Code, than other property being added or allocated to, or also held in, that trust, then the Trustee may (but need not) hold such property instead as a separate trust that is appropriately designated to distinguish it from the trust to which the property otherwise would have been allocated, but that is identical in all other respects to that trust. The identical trusts resulting from application of this subparagraph are also sometimes referred to herein as "related." 3. It is the intent of the Settlor that the Trustee shall not be required to create or administer a trust under this Trust Agreement that is only partially exempt from generation- skipping taxes, or to commingle property subject to different treatment for generation-skipping tax purposes whether because the transferors with respect to the property are assigned to different generations or otherwise. The provisions of this Paragraph A. A of this Section 1.4 1.6 are intended to enable the Trustee to avoid situations by empowering the Trustee to segregate Trust Property (i) that is entirely exempt from generation-skipping tax from Trust property that is not exempt, or (ii) that is otherwise treated differently from other Trust property for purposes of the generation-skipping tax, and the provisions of this Paragraph A should be applied in a manner consistent with this intention. 4. The Trustee has the authority to allocate any portion of the Settlor's exemption under Section 2631(a) of the Code, to property as to which the Settlor is the transferor, including any property transferred by the Settlor during the Settlor's lifetime as to which the Settlor did not make an allocation prior to the Settlor's death, and has the authority to make the special election under Section 2652(a)(3) of the Code. If Section 2631(a) or Section 2652(a)(3) of the Code is not interpreted to allow the Trustee to exercise such election, then the Settlor's Personal Representative is authorized to exercise the special election and allocation of the Settlor's exemption. B. To the extent it is consistent with the Trustee's fiduciary obligations, the Trustee, in making discretionary distributions of net income and principal from the related trusts referred to in Paragraph A. of this Section 1.4, shall take advantage of the opportunities provided by the creation of such related trusts to avoid or delay generation-skipping tax when making discretionary distributions, and to maximize the amount of Trust property that eventually may be distributed to the Settlor's grandchildren or more remote descendants without transfer tax of any kind at the termination of all trusts created under this Trust Agreement.in

Provisions with Regard to Generation Skipping Tax. A. Notwithstanding any other provision of this Trust Agreement: 1. If a trust created under this Trust Agreement (the "original trust") would otherwise be partially exempt from the then available federal estate generation-skipping tax Generation-Skipping Tax Exemption (hereinafter “GST Exemption”) effective at that time in accordance with the provisions of Section 2631 and such related provisions of Chapter 13 of the Internal Revenue Code of 1986 (the "Code") after the intended allocation of a GST Exemption to it, then, before such allocation and as of the relevant valuation date under Section 2642 of the Code with respect to such allocation, the Trustee may (but need not) create instead two separate trusts of equal or unequal value which shall be funded fractionally out of the available property, and which shall be identical in all other respects to the original trust, so that the allocation of GST Exemption can be made to one trust which will be entirely exempt from federal generation-generation- skipping tax. The two trusts created under this ParagraphParagraph A.1 of this Section 1.6 shall have the same name as the original trust except that the trust to which the GST exemption is allocated shall have the phrase "GST EXEMPT" added to its name. 2. If property which is held in, or is to be added or allocated to, a trust pursuant to this Trust Agreement is subject to different treatment for any reason for purposes of the generation-skipping tax under Chapter 13 of the Code, than other property being added or allocated to, or also held in, that trust, then the Trustee may (but need not) hold such property instead as a separate trust that is appropriately designated to distinguish it from the trust to which the property otherwise would have been allocated, but that is identical in all other respects to that trust. The identical trusts resulting from application of this subparagraph are also sometimes referred to herein as "related." 3. It is the intent of the Settlor that the Trustee shall not be required to create or administer a trust under this Trust Agreement that is only partially exempt from generation- skipping taxes, or to commingle property subject to different treatment for generation-skipping tax purposes whether because the transferors with respect to the property are assigned to different generations or otherwise. The provisions of this Paragraph A. A of this Section 1.4 1.6 are intended to enable the Trustee to avoid situations by empowering the Trustee to segregate Trust Property (i) that is entirely exempt from generation-skipping tax from Trust property that is not exempt, or (ii) that is otherwise treated differently from other Trust property for purposes of the generation-skipping tax, and the provisions of this Paragraph A should be applied in a manner consistent with this intention. 4. The Trustee has the authority to allocate any portion of the Settlor's exemption under Section 2631(a) of the Code, to property as to which the Settlor is the transferor, including any property transferred by the Settlor during the Settlor's lifetime as to which the Settlor did not make an allocation prior to the Settlor's death, and has the authority to make the special election under Section 2652(a)(3) of the Code. If Section 2631(a) or Section 2652(a)(3) of the Code is not interpreted to allow the Trustee to exercise such election, then the Settlor's Personal Representative is authorized to exercise the special election and allocation of the Settlor's exemption. B. To the extent it is consistent with the Trustee's fiduciary obligations, the Trustee, in making discretionary distributions of net income and principal from the related trusts referred to in Paragraph A. A of this Section 1.41.6, shall take advantage of the opportunities provided by the creation of such related trusts to avoid or delay generation-skipping tax when making discretionary distributions, and to maximize the amount of Trust property that eventually may be distributed to the Settlor's grandchildren or more remote descendants without transfer tax of any kind at the termination of all trusts created under this Trust Agreement.

Provisions with Regard to Generation Skipping Tax. A. Notwithstanding any other provision of this Trust Agreement: 1. If a trust created under this Trust Agreement (the "original trust") would otherwise be partially exempt from the then available federal estate tax Generation-Skipping Tax Exemption (hereinafter “GST Exemption”) effective at that time in accordance with the provisions of Section 2631 and such related provisions of Chapter 13 of the Internal Revenue Code of 1986 (the "Code") after the intended allocation of a GST Exemption to it, then, before such allocation and as of the relevant valuation date under Section 2642 of the Code with respect to such allocation, the Trustee may (but need not) create instead two separate trusts of equal or unequal value which shall be funded fractionally out of the available property, and which shall be identical in all other respects to the original trust, so that the allocation of GST Exemption can be made to one trust which will be entirely exempt from federal generation-skipping tax. The two trusts created under this Paragraph 2. If property which is held in, or is to be added or allocated to, a trust pursuant to this Trust Agreement is subject to different treatment for any reason for purposes of the generation-skipping tax under Chapter 13 of the Code, than other property being added or allocated to, or also held in, that trust, then the Trustee may (but need not) hold such property instead as a separate trust that is appropriately designated to distinguish it from the trust to which the property otherwise would have been allocated, but that is identical in all other respects to that trust. 3. It is the intent of the Settlor that the Trustee shall not be required to create or administer a trust under this Trust Agreement that is only partially exempt from generation- skipping taxes, or to commingle property subject to different treatment for generation-skipping tax purposes whether because the transferors with respect to the property are assigned to different generations or otherwise. The provisions of this Paragraph A. of this Section 1.4 are intended to enable the Trustee to avoid situations by empowering the Trustee to segregate Trust Property (i) that is entirely exempt from generation-skipping tax from Trust property that is not exempt, or (ii) that is otherwise treated B. To the extent it is consistent with the Trustee's fiduciary obligations, the Trustee, in making discretionary distributions of net income and principal from the related trusts referred to in Paragraph A. of this Section 1.4, shall take advantage of the opportunities provided by the creation of such related trusts to avoid or delay generation-skipping tax when making discretionary distributions, and to maximize the amount of Trust property that eventually may be distributed to the Settlor's grandchildren or more remote descendants without transfer tax of any kind at the termination of all trusts created under this Trust Agreement.