- 10 -
reformation" for this purpose "means a change of a governing
instrument by reformation, amendment, construction, or otherwise
which changes a reformable interest into a qualified interest",
subject to certain conditions. Sec. 2055(e)(3)(B).
A "reformable interest" for this purpose is defined as an
interest that would qualify for a deduction under section 2055(a)
but for the CRAT, CRUT, or PIF requirement of section 2055(e)(2),
sec. 2055(e)(3)(C)(i),9 but only if all payments to be made to
noncharitable beneficiaries before the remainder interest vests
are expressed either in "specified dollar amounts" or as a "fixed
percentage of the fair market value of the [trust] property",
sec. 2055(e)(3)(C)(ii). The requirement that all such payments
be expressed as specified dollar amounts or a fixed percentage of
the fair market value of the trust property does not apply,
however, "if a judicial proceeding is commenced to change such
interest into a qualified interest not later than the 90th day
after the last date (including extensions) for filing the estate
tax return." Sec. 2055(e)(3)(C)(iii)(I).
9 The sec. 2055(e)(3)(C)(i) prong is intended to incorporate
the requirements of prior law, such as that the charitable
remainder interest in a split-interest trust be "ascertainable";
i.e., severable from the noncharitable interest. H. Rept. 98-432
(Part 2), at 1518 (1984); see also Ithaca Trust Co. v. United
States, 279 U.S. 151, 154 (1929); sec. 20.2055-2(a), Estate Tax
Regs.
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