Your Business Pak/BusinessPak2.iso/Pca/_SETUP.1/CHARITRU.BLD

Text File | 1997-07-22 | 6KB | 171 lines

#600
@001 Enter the name of the DONOR:
~Enter the name of the person who is donating property.
@003 Enter the name of the INITIAL TRUSTEE:
~Enter the name of the person to firm to act as the initial
~trustee of the estate,
@004 Enter the name of the Trust:
~Enter the name of the trust.
@020 Enter the state law to control the trust:
~Enter the name of the state where the trust is located, or, if
~there is a specific reason for another state's law to be
~applied (such as the fact that the charity is located in another
~state) enter the name of the other state.
@006 Enter the name of the charity:
~Enter the full legal name of the charity.
@876 Please describe the property transferred to the trust:
~Enter a description of the property which is being donated to
~the trust. If the list is lengthy, refer to an attached exhibit.
#end control section
#600


CHARITABLE REMAINDER UNITRUST


@001, referred to as the DONOR, herewith establishes a charitable
remainder unitrust, within the meaning of Rev. Pro. 89-20 and
section 664(d)(2) of the Internal Revenue Code, and hereby creates
the @004 Charitable Remainder Unitrust; and designates @003 to
act as the INITIAL TRUSTEE.


The DONOR transfers to the INITIAL TRUSTEE the following
described property:


@876


to be held strictly in trust for the purposes and under the terms
and conditions set forth herein.


The trustee shall pay to a living individual ("recipient") in
each taxable year of the trust during the recipients life a
unitrust amount equal to at least five percent of the net fair
market value of the assets of the trust valued as of the first
day of each taxable year of the trust ("valuation date"). The
unitrust amount shall be paid in equal quarterly amounts from
income and, to the extent that income is not sufficient, from the
trust principal.


The trustee shall operate the trust in accordance with the laws
of the state of @020. However, the trustee shall not exercise any
power or discretion granted under such laws that would result in
a disqualification of the trust under section 664(d)(2) of the
Internal Revenue Code.


The trustee shall not be precluded from investing trust assets in
a manner possibly resulting in the annual realization of a
reasonable amount of income or gain from the sale or disposition
of assets.


In the event that the income exceeds the unitrust amount, the
surplus shall be added to the principal of the trust.


If the net fair market value of the trust assets is incorrectly
determined then within a reasonable time after the value is
finally determined, then within a reasonable period after the
value is finally determined for federal income tax purposes, the
trustee shall:


In the event of an overpayment resulting from an overvaluation,
collect the amount of the overpayment from the recipient;


In the event of an underpayment resulting from an undervaluation,
pay the amount of the underpayment to the recipient.


In determining the unitrust amount, the trustee shall prorate the
amount on a daily basis for a short taxable year and for the
taxable year of the recipients death.


Upon the death of the recipient, the trustee shall distribute the
corpus of the trust, inclusive of interest and principal, except
for any amounts due to the recipient's estate, to @006, (the
charity). In the event that the charity is not an organization
described in sections 170(c), 2055(a) and 2522(a) of the Internal
Revenue Code at the time when any distributions are to be made to
the Charity, the trustee shall distribute such principal and
interest to any such organization, in trustee's sole discretion.


The income of the trust for each taxable year shall be
distributed at such time and in such manner as not to subject the
trust to tax under section 4923 of the Internal Revenue Code.
Except for the payment of the unitrust amount to the recipient,
the trustee shall not engage in any act of self-dealing as
defined in section 4941(d) of the Internal Revenue Code, and
shall not make any taxable expenditures as defined in section
4945(d) of the Internal Revenue Code. The trustee shall not make
any investments that jeopardize the charitable purpose of the
trust, within the meaning of section 4944, Internal Revenue Code,
or retain any excess business holdings, within the meaning of
section 4943.


If any additional contributions are made to the trust after the
initial contribution, the unitrust amount for the year in which
the additional contribution is made shall be five percent of the
sum of (a) the net fair market value of the trust assets as of
the first day of the taxable years (excluding the assets so added
and any income form, or appreciation and gain on such assets) and
(b) the proportion of the value of the assets so added that was
excluded under (a) that the number of days in the period that
begins with the date of contribution and ends with the earlier of
the last day of the taxable year or the recipient's death bears
to the number of days in the period that begins on the first day
of such taxable year and ends with the earlier of the last day in
such taxable year or the recipient's death. In the case where
there is no valuation date after the time of contribution, the
assets so added shall be added at the time of contribution.


The donor reserves the right to dismiss the trustee and to
appoint a successor.


The trust is irrevocable, however, the trustee shall have the
power, acting alone, to amend the trust in any manner which is
required for the sole purpose of continuation of the trust's
qualification as a charitable remainder unitrust within the
meaning of section 664(d)(2) of the Internal Revenue Code.

Dated: ________________





__________________________________

DONOR



__________________________________

TRUSTEE


The TRUSTEE herewith acknowledges receipt of the trust assets
described above.



Dated: ________________



__________________________________

TRUSTEE