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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.
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