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charitable remainder trusts. Petitioners rely on the legislative
history of section 2702, which states that qualified interests
under section 2702 “are similar to those permitted in charitable
split interest trusts under section 664." 136 Cong. Rec. S15629,
S15682 n.30 (daily ed. Oct. 18, 1990) (Explanatory Material
Concerning Committee on Finance 1990 Reconciliation Submission
Pursuant to House Concurrent Resolution 310).
Section 664(d) defines a charitable remainder annuity trust
as follows:
(d) Definitions.--
(1) Charitable remainder annuity trust.--For
purposes of this section, a charitable remainder
annuity trust is a trust--
(A) from which a sum certain (which is
not less than 5 percent of the initial net
fair market value of all property placed in
trust) is to be paid, not less often than
annually, to one or more persons (at least
one of which is not an organization described
in section 170(c) and, in the case of
individuals, only to an individual who is
living at the time of the creation of the
trust) for a term of years (not in excess of
20 years) or for the life or lives of such
individual or individuals * * *. [Emphasis
added.]
If Congress intended to include dual-life annuities in the
definition of a qualified interest for valuing the remainder
interests of GRAT’s, Congress could have included similar “life
or lives” language in section 2702. Instead, section 2702 is
silent as to what constitutes an acceptable term for a qualified
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