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and December 1, 1988.5 At Mrs. Schutt’s death, following payment
of certain cash bequests, the corpus of the revocable trust was
divided into three trusts: (1) A marital trust; (2) a
generation-skipping transfer tax exemption trust (GST trust); and
(3) a residuary trust. WTC became trustee of these trusts, the
GST portion of which is also referred to as Trust 11258-3.
The marital trust was to be funded with the “marital
deduction amount”, an amount which, taking into account
applicable provisions of the Code, resulted in a taxable estate
of $2.5 million, less the amount of any adjusted taxable gifts.
During decedent’s life, he was to receive net income therefrom
and so much of principal as he requested. At his death,
remaining corpus was to be distributed according to the exercise
of a power of appointment granted to decedent. In absence of an
exercise of this power, and after taking into account specified
provisions relating to payment of taxes and expenses, remaining
marital trust assets were to be added to the residuary trust.
The GST trust was to be funded with property equal in value
to the maximum amount then available to Mrs. Schutt under the
generation-skipping transfer tax exemption set forth in the Code.
The trustee was authorized, in its sole discretion, to distribute
5 One of the parties’ stipulations contains a mistaken
reference to the date of the final supplemental trust agreement
as Sept. 1, 1998. Elsewhere in the same stipulation, as well as
in the accompanying exhibit, the correct date of Dec. 1, 1988, is
reflected.
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