Common use of Separate Trust Terms Clause in Contracts

Separate Trust Terms. To administer any trust or account created by segregation or severance as follows: (a) Income earned on a segregated amount, portion or specific assets after the segregation is effective shall pass to the recipient of such amount, portion or specific Trust Funds. In administering the Trust Funds of any separate account or trust and in making applicable tax elections, the Trustee shall consider the differences in federal tax attributes and all other factors the Trustee believes pertinent consistent with applicable rules and regulations. (b) A separate trust or account created by severance or segregation shall be treated as a separate trust for all purposes from and after the date designated by the Trustee as the effective date of the severance or segregation. Such trust shall be held on terms and conditions substantially equivalent to the terms of the trust from which it was severed or segregated, so that the aggregate interests of the Beneficiary in the several trusts are substantially equivalent to the Beneficiary’s interests in the trust before severance or segregation would adversely affect qualification of the trust for any federal tax deduction, exclusion, election, exemption or other special federal tax status, that provision shall remain unchanged in each of the separate trusts.

Separate Trust Terms. To administer any trust or account created by segregation or severance as follows: (a) Income earned on a segregated amount, portion or specific assets after the segregation is effective shall pass to the recipient of such amount, portion or specific Trust Funds. In administering the Trust Funds of any separate account or trust and in making applicable tax elections, the Trustee shall consider the differences in federal tax attributes and all other factors the Trustee believes pertinent consistent with applicable rules and regulations. (b) A separate trust or account created by severance or segregation shall be treated as a separate trust for all purposes from and after the date designated by the Trustee as the effective date of the severance or segregation. Such trust shall be held on terms and conditions substantially equivalent to the terms of the trust from which it was severed or segregated, so that the aggregate interests of the Beneficiary in the several trusts are substantially equivalent to the Beneficiary’s interests in the trust before severance or segregation. Despite the preceding, if a change to a provision of the trust before severance or segregation would adversely affect qualification of the trust for any federal tax deduction, exclusion, election, exemption or other special federal tax status, that provision shall remain unchanged in each of the separate trusts.