William A. and Gayle T. Cook, Donors - Page 6




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          the grantor should revoke the spouse’s designation as the                   
          successor annuitant, then the terms of the trust agreement are to           
          be applied as if the spouse had predeceased the grantor.                    
               The 1995 GRAT’s                                                        
               Each of the 1995 GRAT’s provides for annual payments,                  
          referred to as the Annuity Amount, to be paid to the grantor                
          during the Annuity Term.  The Annuity Term for Mr. Cook’s 1995              
          GRAT is 3 years, and the Annuity Term for Mrs. Cook’s 1995 GRAT             
          is 5 years.  In the case of Mr. Cook’s 1995 GRAT, the Annuity               
          Amount is the fair market value of the initial assets of such               
          trust as of the date of transfer, as finally determined for                 
          Federal tax purposes, multiplied by .3175, .3810, and .4572, for            
          year 1 through year 3, respectively.  In the case of Mrs. Cook’s            
          1995 GRAT, the Annuity Amount is the fair market value of the               
          initial assets of such trust as of the date of transfer, as                 
          finally determined for Federal tax purposes, multiplied by                  
          .168940, .202728, .2432736, .2919283, and .3503139, for year 1              
          through year 5, respectively.                                               
               Each of the 1995 GRAT’s provides that during the Annuity               
          Term of the trust no distribution of trust income or principal              
          may be made to any person other than the grantor.                           
               If the grantor of each 1995 GRAT survives the Annuity Term,            
          then any remaining trust property, after payment of the Annuity             
          Amount, shall be used to establish a separate trust for the                 






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Last modified: May 25, 2011