- 17 - We reject the estate's contention that the return statement amended the trust into a CRUT. Even if we accept the dubious proposition that a statement on a Federal estate tax return could operate to amend a trust created under State law, the return statement nowhere contains the words "amend" or "amendment" or otherwise suggests this purpose in any way. Moreover, there is no evidence that, as of the return's filing, either the charitable or the noncharitable beneficiaries consented to the amendment purportedly manifested on the estate's return, as required by Illinois law.14 The estate also contends in the alternative that the return statement was equivalent to the commencement of a judicial 14 Decedent as settlor directed that the trust be governed by Illinois law, and the estate on brief takes the position that Illinois law governs. Illinois law requires the consent of all charitable and noncharitable beneficiaries (whose interests have not expired) before a trustee may amend a charitable trust instrument to bring it into conformity with the CRUT requirements of sec. 664. See 760 Ill. Comp. Stat. Ann. 60/1(2) (West 1992). Notwithstanding the foregoing provision of Illinois law, the estate argues that the trustee was authorized, acting alone, to amend the trust instrument, citing as authority Rev. Proc. 89-20, 1989-1 C.B. 841. Rev. Proc. 89-20, supra, provides a sample form of a declaration of trust that, if followed by a taxpayer, the Commissioner agrees to treat as satisfying the requirements for a CRUT. The sample form contains a provision authorizing the trustee, acting alone, to amend the trust in any manner required for the sole purpose of ensuring that the trust qualifies as a CRUT. Rev. Proc. 89-20, supra, is conditioned, however, upon a taxpayer's trust's being "a valid trust under applicable local law." We conclude that Rev. Proc. 89-20, supra, is neither intended to, nor does it, abrogate the requirements of Illinois law for amending a charitable trust.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
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