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

easonable period of time, in order to permit sufficient time for the withdrawal
rights of such Power Holders to be exercised or lapse, except that such delay may
not reduce the amount allocable to the Marital Trust in a manner in which the estate
tax marital deduction would be disallowed. With respect to any Powers of
Withdrawal held by my Spouse (or another Grantor’s Spouse), such Power may not
be applied to the Marital Trust if such application would result in the
disqualification of the estate tax marital deduction (if so elected).
(15) Restriction of a Withdrawal Right. Any Grantor (or a duly authorized agent) may,
by a written instrument delivered to the Trustees at the time of a Contribution and
with respect solely to such Contribution (and with respect to future Contributions to
be made by the Grantor, if the instrument so provides), do any of the following:
(a)
(b)
(c)
(d)
Exclude any person who would otherwise have a withdrawal right from
exercising that withdrawal right as to such Contribution(s);
Increase or decrease the amount subject to any Power Holder's withdrawal
right as to such Contribution(s), except that the amount subject to the
withdrawal right shall not exceed the amount of the Contribution;
Change the period during which any Power Holder's withdrawal right as to
such Contribution(s) may be exercised; and/or
Change the manner and period during which any Power Holder's
withdrawal right as to such Contribution(s) shall lapse.
No such direction may in any way alter, amend or change any Power Holder's
withdrawal right with respect to any prior Contributions or with respect to future
Contributions by any Grantor.
(16) Withdrawal Rights Personal To Power Holder; Lapse Upon Transfer. All Powers
of Withdrawal shall be personal to the Power Holder and such powers shall not be
transferable to any other person, including to the Power Holder’s estate. Except
with respect to a withdrawal right that has been outstanding for fewer than thirty
(30) days from the date of a Contribution, all Powers of Withdrawal shall
immediately lapse upon a Power Holder’s assignment for the benefit of the Power
Holder’s creditors, filing a voluntary petition in bankruptcy, being adjudicated
bankrupt or insolvent, or consenting to or acquiescing in the appointment of a
trustee in bankruptcy or a receiver in bankruptcy for all or any substantial part of
the Power Holder’s assets or properties. Notwithstanding the foregoing, the
applicable trust shall be liable for and subject to apportionment of death taxes
related to such Power as may be applicable to the Power Holder’s estate.
(17) Power to Amend. The Independent Trustees may amend this paragraph 1.1 in the
manner provided by Article 8 [power to amend] to assure that Contributions qualify
for the gift tax annual exclusion for federal gift tax purposes, except that no
amendment may be made that would (a) cause any portion of any trust to be
included in the gross estate of me or any other Contributor to a greater extent than
before such amendment and (b) alter the rights of a Power Holder in any thenexercisable
power of withdrawal before such amendment.
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