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been paid to the grantor if the grantor had survived the
remainder of the 5-year term of the GRAT. Upon the earlier of
the expiration of the 5-year term or the death of the grantor’s
spouse, the remaining trust assets will be used to establish a
separate trust for the grantor’s son.
Mr. Cook’s 1993 GRAT provides that Mrs. Cook would have
certain powers to appoint income and principal of the GRAT to and
among the grantor’s son, Carl, members of his family, “and
Charities”, but that any exercise of such powers would not take
effect unless Mr. Cook survived the term of the GRAT. Mr. Cook’s
1993 GRAT also provides that Mrs. Cook would have certain powers
of appointment with respect to the income and principal of the
CMAT, but the GRAT mandates that no distributions may be made
from the CMAT to any other person during the life of Mrs. Cook.
Mrs. Cook’s 1993 GRAT provides that Mr. Cook would have
certain powers of appointment with respect to the income and
principal of the CMAT, but the GRAT also states that no
distributions may be made from the CMAT to any other person
during the life of Mr. Cook.
Each of the 1993 GRAT’s is irrevocable in all respects
except that the grantor retains the right to revoke the
designation of his or her spouse as the successor annuitant. If
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Last modified: May 25, 2011