Common use of Subpart E trust continuing after xxxxxxx’s death Clause in Contracts

Subpart E trust continuing after xxxxxxx’s death. On January 1, 2003, M trans- fers stock in X, an S corporation, and other assets to Trust. Under the terms of Trust, the trustee of Trust has complete discretion to distribute the income or principal to M during M’s lifetime and to M’s children upon M’s death. During M’s life, M is treated as the owner of Trust under section 677. The trustee of Trust makes a valid election to treat Trust as an ESBT effective January 1, 2003. On March 28, 2004, M dies. Under appli- cable local law, Trust does not terminate on M’s death. Trust continues to be an ESBT after M’s death, and no additional ESBT election needs to be filed for Trust after M’s death.

Subpart E trust continuing after xxxxxxx’s death. On January 1, 2003, M trans- fers stock in X, an S corporation, and other assets to Trust. Under the terms of Trust, the trustee of Trust has complete discretion to distribute the income or principal to M during M’s lifetime and to M’s children upon M’s death. During M’s life, M X is treated as the owner of Trust under section 677. The trustee of Trust makes a valid election to treat Trust as an ESBT effective January 1, 2003. On March 28, 2004, M dies. Under appli- cable local law, Trust does not terminate on M’s death. Trust continues to be an ESBT after M’s death, and no additional ESBT election needs to be filed for Trust after M’s death.