Invalidating an irrevocable trust

(e) COMPANY, IN ITS SOLE DISCRETION, MAY AT ANY TIME, OR FROM TIME TO TIME, MAKE ADDITIONAL DEPOSITS OF CASH OR OTHER PROPERTY IN TRUST WITH TRUSTEE TO AUGMENT THE PRINCIPAL TO BE HELD, ADMINISTERED AND DISPOSED OF BY TRUSTEE AS PROVIDED IN THIS TRUST AGREEMENT.

NEITHER TRUSTEE NOR ANY PLAN PARTICIPANT OR BENEFICIARY SHALL HAVE ANY RIGHT TO COMPEL SUCH ADDITIONAL DEPOSITS.

invalidating an irrevocable trust-21

dating dead men review - Invalidating an irrevocable trust

In many of these requests, the trust instruments are very similar.

Consequently, in order to aid taxpayers and to expedite the processing of ruling requests on these arrangements, this Revenue Procedure provides a model trust instrument that plan sponsors may use. SCOPE AND OBJECTIVE The model trust provided in this Revenue Procedure is intended to serve as a safe harbor for taxpayers that adopt and maintain grantor trusts in connection with unfunded deferred compensation arrangements.

Finally, the submission must also include a copy of the trust on which all substituted or additional language is either underlined or otherwise clearly marked and on which the location of the required investment authority language is indicated. The request for a ruling must contain a representation that the trust is a valid trust under state law and that all of the material terms and provisions of the trust, including the creditors' rights clause, are enforceable under the appropriate state laws. The trustee of the trust must be an independent third party that may be granted corporate trustee powers under state law, such as a bank trust department or other similar party. Provisions agreed to by the parties should be used to describe investment powers.

The trustee must be given some investment discretion, such as the authority to invest within broad guidelines established by the parties (e.g., invest in government securities, bonds with specific ratings, or stocks of Fortune 500 companies). TRUST UNDER ____ PLAN OPTIONAL (a) THIS AGREEMENT MADE THIS ___ DAY OF ___, BY AND BETWEEN ____ (COMPANY) AND ____ (TRUSTEE); OPTIONAL (b) WHEREAS, COMPANY HAS ADOPTED THE NONQUALIFIED DEFERRED COMPENSATION PLAN(S) AS LISTED IN APPENDIX _____.

Taxpayers that adopt the model trust and wish to obtain a ruling on the underlying nonqualified deferred compensation plan, must include a representation that the plan, as amended, is not inconsistent with the terms of the trust and must follow the guidelines outlined in Section 4 of this Revenue Procedure and Revenue Procedure 92-65.

Last modified 29-Sep-2019 12:02