SEC. 4. SAMPLE QUALIFIED

DOMESTIC TRUST LANGUAGE THAT MAY BE USED TO SATISFY THE ‘‘GOVERNING INSTRUMENT’’ REQUIREMENTS OF § 20.2056A–2(d)(1)(i) and (ii).

My trustee shall comply with the requirements for security arrangements for qualified domestic trusts as set forth in Treas. Reg. § 20.2056A–2(d)(1)(i) or (ii), summarized as follows:

(a) Trust in Excess of $2 Million. If the fair market value of the assets passing to the trust (determined without reduction for any indebtedness thereon) exceeds $2 million on the relevant valuation date, then my Trustee must at all times during the term of the Trust either satisfy the U.S. Bank as Trustee requirement (see Treas. Reg. § 20.2056A–2(d)(1)(i)(A)), or furnish a bond that satisfies the requirements of Treas. Reg. § 20.2056A– 2(d)(1)(i)(B), or furnish an irrevocable letter of credit that satisfies the requirements of Treas. Reg. § 20.2056A–2(d)(1)(i)(C), (hereinafter referred to as the U.S. Bank, Bond, or Letter of Credit Requirement). My Trustee may alternate between any of the security arrangements described in the preceding sentence provided that, at all times during the term of the trust, one of the arrangements is operative.

If my Trustee elects to furnish a bond or letter of credit as security, then in the

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event the Internal Revenue Service draws on the instrument in accordance with its terms, neither my U.S. Trustee nor any other person will seek a return of any part of the remittance until after April 15th of the calendar year following the year in which the bond or letter of credit is drawn upon.

(b) Trust of $2 Million or Less. If the fair market value of the assets passing to the trust (determined without reduction for any indebtedness) is $2 million or less on the relevant valuation date, then my Trustee must comply with either the U.S. Bank, Bond, or Letter of Credit Requirement only if more than 35% of the fair market value of the trust assets, determined annually on the last day of the taxable year of the trust, consists of real property located outside the United States. For purposes of determining whether more than 35% of the trust assets consist of foreign real property, Treas. Reg. § 20.2056A–2(d)(1)(ii)(B) applies.

(c) Determination of Value. For purposes of determining whether the fair market value of the trust assets exceeds $2 million, my Trustee is authorized to make the election under Treas. Reg. § 20.2056A–2(d)(1)(iv)(A) with respect to real property used as my spouse’s personal residence.

(d) Amount of Bond or Letter of Credit. For purposes of determining the amount of the bond or letter of credit, my Trustee is authorized to make the election under Treas. Reg. § 20.2056A– 2(d)(1)(iv)(B) with respect to real property used as my spouse’s personal residence.

(e) Annual Statements. My Trustee is directed to file any annual statements required under Treas Reg. § 20.2056A– 2(d)(3). (f) General Conduct. Notwithstanding anything contained herein to the contrary, my U.S. Trustee is hereby authorized to enter into alternative plans or arrangements with the Internal Revenue Service pursuant to Treas. Reg. § 20.2056A–2(d)(4) to assure collection of the deferred estate tax, in lieu of the provisions contained herein.

(g) References to Regulations. All references to ‘‘Treas. Reg.’’ in this document shall be references to regulations published under 26 CFR as in effect on the date of execution of this document, or, in the event that any such regulation is amended or superseded thereafter, to

to eliminate an optional form of benefit provided for in the plan prior to December 12, 1994, solely with respect to benefits attributable to assets and liabilities that are transferred (within the meaning of § 414(l)) from a money purchase pension plan (other than any portion of those assets and liabilities attributable to voluntary employee contributions), to the extent that the optional form permits distribution of those benefits prior to the employee’s retirement, death, disability, or severance of employment, and prior to plan termination. The plan amendment eliminating the optional form of benefit must be adopted by the last day of the first plan year beginning on or after December 12, 1994, and must be made effective not later than the first day of that plan year, or, if later, 90 days after December 12, 1994. .07 With respect to certain plans, employers are entitled to extended reliance pursuant to Rev. Proc. 89–9, 1989–1 C.B. 780, Rev. Proc. 89–13, 1989–1 C.B. 801 (both as modified by Rev. Proc. 93–9, 1993–1 C.B. 474), or Rev. Proc. 93–39, 1993–2 C.B. 513 (relating to master or prototype plans, regional prototype plans, and individually designed plans). Except in certain limited circumstances, plans that are entitled to this extended reliance generally are not required to be amended until 1999 to comply with administrative guidance of general applicability (e.g., revenue rulings). Accordingly, for a profit-sharing or stock bonus plan entitled to extended reliance, if no transfer of assets and liabilities to the plan from a money purchase pension plan occurred or occurs after the date of the plan’s most recent determination letter and prior to the date that the amendment required by Rev. Rul. 94–76 is adopted and if the amendment is made effective within certain time limits specified in Rev. Rul. 94–76, there is an extended period for amending the plan.