SECTION 6. ALTERNATE PROVISIONS FOR SAMPLE TESTAMENTARY CHARITABLE LEAD

UNITRUST

.01 Unitrust Period for the Life of One Individual .

(1) Explanation . As an alternative to establishing a CLUT for a term of years, the trust instrument of a testamentary CLUT may

provide for payment of the unitrust amount for the life or lives of an individual or individuals. However, only one or more of the following individuals may be used as measuring lives: the decedent’s spouse and an individual who, with respect to all remainder beneficiaries (other than charitable organizations described in § 170 or 2055), is either a lineal ancestor or the spouse of a lineal ancestor of those beneficiaries. A trust will satisfy the requirement that each measuring life is a lineal ancestor (or the spouse of a lineal ancestor) of all noncharitable remainder beneficiaries if on the decedent’s date of death there is a less than 15 percent probability that individuals who are not lineal descendants of an individual who is a measuring life will receive any trust principal. The probability must be computed under the applicable tables in § 20.2031–7. Section 20.2055–2(e)(2)(vii)( a ). (2) Instruction for use . Replace the fifth and sixth sentences of paragraph 1, Payment of Unitrust Amount, of the sample trust

with the following sentences:

The unitrust period is the lifetime of [ designated measuring life ]. The first day of the unitrust period shall be the date of my death, and the last day of the unitrust period shall be the date of death of [ designated measuring life ].

.02 Apportionment of the Unitrust Amount in the Discretion of the Trustee .

(1) Explanation . The trustee of a testamentary charitable lead trust may be granted the power to apportion the unitrust payment

from time to time among a class of qualifying charitable beneficiaries. See §674(b)(4). (2) Instruction for use . Replace the first three sentences of paragraph 1, Payment of Unitrust Amount, of the sample trust with

the following two sentences:

For each taxable year of the trust during the unitrust period, the Trustee shall pay to one or more members of a class comprised of organizations described in §§ 170(c) and 2055(a) (hereinafter, collectively “the Charitable Organization”) a unitrust amount equal to [ number representing the annual unitrust percentage to be paid to the Charitable Organization ] 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 (hereinafter “the valuation date”). The Trustee may pay the unitrust amount to one or more members of the class, in equal or unequal shares, as the Trustee, in the Trustee’s sole discretion, from time to time may deem advisable.

.03 Designation of an Alternate Charitable Beneficiary in the Trust Instrument .

(1) Explanation . The sample trust provides that, in the event the charitable beneficiary designated in the trust instrument is not

an organization described in §§ 170(c) and 2055(a) at the time any payment is to be made to it, the trustee shall distribute such payments to one or more organizations described in §§ 170(c) and 2055(a) as the trustee shall select. As an alternative, the trust instrument may specifically designate one or more alternate charitable beneficiaries. (2) Instruction for use . Replace the second sentence in paragraph 1, Payment of Unitrust Amount, of the sample trust with the

following two sentences:

If [ designated charitable recipient ] is not an organization described in §§ 170(c) and 2055(a) at the time any payment is to be made to it, the Trustee shall instead distribute such payments to [ designated substitute charitable recipient ]. If neither [ designated charitable recipient ] nor [ designated substitute charitable recipient ] is an organization described in §§ 170(c) and 2055(a) at the time any payment is to be made to it, the Trustee shall distribute such payments to one or more organizations described in §§ 170(c) and 2055(a) as the Trustee shall select, and in such proportions as the Trustee shall decide, from time to time, in the Trustee’s sole discretion.