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death.5 Petitioner argues that, under this provision of the
regulation, the trust did not come into being until the date of
decedent’s death, and therefore no prior violation of the CRAT
requirements could disqualify the trust. Petitioner’s position
overlooks that this provision of the regulation is inapplicable
to the trust involved here--an irrevocable trust established and
funded by decedent during her lifetime. The application of this
provision of the regulation, as reflected in its terms and
illustrated by the accompanying examples, see sec. 1.664-1(a)(6),
Income Tax Regs., is confined to testamentary trusts funded for
the first time after the grantor’s death. In the present case,
the trust is deemed created at the earliest time that neither the
grantor nor any other person is treated as the owner of the
entire trust. See sec. 1.664-1(a)(4), Income Tax Regs. Here,
5 Sec. 1.664-1(a)(5), Income Tax Regs., provides:
(5) Rules applicable to testamentary transfers--
(i) Deferral of annuity or unitrust amount.
Notwithstanding subparagraph (4) of this paragraph
and �� 1.664-2 and 1.664-3, for purposes of
sections 2055 and 2016 a charitable remainder
trust shall be deemed created at the date of death
of the decedent (even though the trust is not
funded until the end of a reasonable period of
administration or settlement) if the obligation to
pay the annuity or unitrust amount with respect to
the property passing in trust at the death of the
decedent begins as of the date of death of the
decedent, even though the requirement to pay such
amount is deferred in accordance with the rules
provided in this subparagraph. * * *
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