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grantor’s son. If, however, either of the 1995 GRAT’s ends by
reason of the death of the grantor and the grantor is survived by
his or her spouse, then the remaining trust property shall be
disposed of under a CMAT.
Each of the 1995 GRAT’s provides for annuity payments under
the CMAT to the grantor’s spouse, referred to as Spousal Annuity
Amounts, for the shorter of a term of years (3 years under Mr.
Cook’s 1995 GRAT and 5 years under Mrs. Cook’s 1995 GRAT) after
the grantor’s death or until the spouse’s earlier death. The
Spousal Annuity Amount that would be payable to the grantor’s
spouse under the CMAT during the initial 3 years under Mr. Cook’s
1995 GRAT and during the initial 5 years under Mrs. Cook’s 1995
GRAT is the same “Annuity Amount that would have been determined
with respect to * * * [the grantor] if * * * [the grantor] had
survived.” Under the CMAT provisions, no distributions may be
made from the CMAT to any other person during the spouse’s life.
The spouse has a testamentary power of appointment with respect
to any remaining trust property, including any remaining payments
of the Spousal Annuity Amount or of income.
Each 1995 GRAT is irrevocable except that the grantor
retains the right to revoke the designation of his or her spouse
as the successor annuitant. If the grantor revokes the spouse’s
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Last modified: May 25, 2011