SECTION 4. EXAMPLES — Internal Revenue Bulletin 2005-16

In each of the following examples, G created a CRAT that provides an annuity to G for G ’s life. Upon G ’s death, the remainder of the trust will pass to an organization that meets the requirements of § 170(c). In each example (except Example 3 ), at the time the CRAT is created, applicable state law provides S a right of election to receive an elective share of G ’s estate and the share would include (and could be satisfied from) assets of the trust.

.01 Example 1 . G creates the trust in 2007 while married to S . On or before the date that is 6 months after the due date (excluding extensions of time to file actually granted) of the Form 5227 for the trust for calendar year 2007, S irrevocably waives S ’s right of election to receive an elective share with regard to the assets in the trust (but does not waive the right of election with regard to G ’s probate estate).

.02 Example 2 . G creates the trust in 2006, and is unmarried on the date the trust is created. On May 1, 2007, G marries S . On or before the date that is 6 months after the due date (excluding extensions of time to file actually granted) of the Form 5227 for the trust for calendar year 2007, S irrevocably waives the right of election to receive an elective share with regard to the assets in the trust (but does not waive the right of election with regard to G ’s probate estate).

.03 Example 3 . G creates the trust in 2008 while married to S . Under applicable state law in effect on the date that G creates the trust, the elective share does not include the assets in the trust. Effective on March 1, 2009, applicable state law is amended to give S the right of election to receive an elective share of the “augmented estate,” which, by definition, includes the assets of the trust. On or before the date that is 6 months after the due date (excluding extensions of time to file actually granted) of the Form 5227 for the trust for calendar year 2009, S irrevocably waives the right of election to receive an elective share with regard to the assets in the trust (but does not waive the right of election with regard to G ’s probate estate).

In each of Examples 1 through 3, assuming that S ’s timely waiver of the right

2005–16 I.R.B. 910 April 18, 2005