Probate & Trust Law Section Conference Manual ... - Minnesota CLE

Estate or the proceeds of such assets out of which such power of withdrawal could
be satisfied (the "Permitted Lapse Amount"), such powers shall not lapse but shall
continue to be exercisable into the subsequent calendar year ("Carryover Powers").
All powers shall lapse to the extent of the Permitted Lapse Amount until all such
powers have either been exercised by the Power Holder or lapsed pursuant to this
paragraph 1.1(7). To the extent not previously utilized during any calendar year,
any Permitted Lapse Amount shall lapse on December 31, of each year, except to
the extent that the thirty (30) day lapse period for a particular Contribution has not
yet ended. Consequently, it is my intention that such powers shall continue in
existence with respect to any amount that would be a taxable gift by the Power
Holder in the absence of such limitation upon the lapse of such powers. I am
aware, however, that the application of this paragraph 1.1(7) may change as a result
of amendments to Code Section 2514(e) or successor provisions, promulgation of
Regulations or rulings by courts. If there is any such change in applicable law,
then this paragraph 1.1(7) shall be construed with my primary intention that such
power of withdrawal shall terminate as soon as possible but only to the extent that
such termination shall not result in a taxable gift by the Power Holder and the
Independent Trustee is authorized to make any amendments to this Article as may
be necessary to satisfy such intention.
(8) Notice of Withdrawal Right. Each eligible Power Holder (or the person designated
by the Trustee or Power Holder to exercise an eligible Power Holder’s withdrawal
right) shall be kept reasonably informed by the Grantor, Contributor or Trustee (or
its agent or delegate) of all Contributions that are made or are anticipated to be
made from which the Power Holder has or may have a power of withdrawal.
Notice may be given orally or in writing, and such notice may include, by way of
example (and without limitation), annually informing each Power Holder of
Contributions and withdrawal rights, by providing the Power Holder with a single
notice sufficient to apprise the Power Holder of current and expected future
withdrawal rights, or any other means determined by the Contributor or Trustee to
provide each eligible Power Holder (or the person who would exercise an eligible
Power Holder’s withdrawal right) with reasonable notice and opportunity to
exercise the power. The Trustees may rely upon information regarding the name,
age, address and capacity of any Power Holder and the marital status provided by
me or any other Grantor or Contributor. The primary responsibility for providing
such notice shall be the Trustees, or whomever they may designate as their agent
for the purpose of giving notice. Unless and until changed by the Trustees,
[Grantor] shall be primarily responsible for providing such notice.
(a)
Designation Of Agent By Power Holder. Each Power Holder may
designate an agent to receive notice of Contributions and rights of
withdrawal. Such agent(s) may be Trustees or such other persons as the
Power Holder may designate. If the Power Holder is under a legal
disability, the Trustee may designate an agent for such Power Holder, as
provided in paragraph 1.1(13). The Trustee may rely upon instructions
given by such agent for the giving of notice when supplied with the
designation of an agent signed by the Power Holder. If notice is given to
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