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--></style></head><body lang="EN-US" link="#0563C1" vlink="#954F72" style="word-wrap:break-word"><div class="WordSection1"><p class="MsoNormal">I wrote an article on the technique in Trusts and Estates in 2020 that contains useful links, some of which provides drafting materials.</p><p class="MsoNormal"> </p><p class="MsoNormal"><a href="https://d9ee9a6d-0f12-4749-8836-2e73487cafa5.filesusr.com/ugd/09ecee_d3456038ff474d1fb377030a9be40278.pdf">https://d9ee9a6d-0f12-4749-8836-2e73487cafa5.filesusr.com/ugd/09ecee_d3456038ff474d1fb377030a9be40278.pdf</a></p><p class="MsoNormal"> </p><p class="MsoNormal"> </p><p class="MsoNormal"><span style="color:#222222">Robert J. Kolasa<br>Robert J. Kolasa, Ltd.<br>Attorney, C.P.A., LL.M. (Tax)<br>1401 N. Western Avenue, 2nd Floor<br>Lake Forest, IL 60045<br><br>Telephone: 1-847-234-6262<br>Facsimile: 1-847-234-7629<br>E-Mail: </span><a href="mailto:robert@kolasalaw.com" target="_blank"><span style="color:#1155cc">robert@kolasalaw.com</span></a><span style="color:#222222"><br>Web site: </span><a href="http://www.kolasalaw.com/" target="_blank"><span style="color:#1155cc">http://www.kolasalaw.com</span></a><span style="color:#222222"><br><br>Confidentiality: This email message is intended for the use of the individual or entity to which it is addressed, and may contain information that is privileged, confidential or exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this message in error, please notify the sender immediately by telephone and delete the original message from your email. Thank you.</span></p><p class="MsoNormal"> </p><p class="MsoNormal"> </p><p class="MsoNormal"> </p><div><div style="border:none;border-top:solid #e1e1e1 1.0pt;padding:3.0pt 0in 0in 0in"><p class="MsoNormal"><b>From:</b> <a href="mailto:estgift-bounces@actec.org">estgift-bounces@actec.org</a> <<a href="mailto:estgift-bounces@actec.org">estgift-bounces@actec.org</a>> <b>On Behalf Of </b>Day, Eileen<br><b>Sent:</b> Friday, January 7, 2022 10:27 AM<br><b>To:</b> '<a href="mailto:EstGift@actec.org">EstGift@actec.org</a>' <<a href="mailto:EstGift@actec.org">EstGift@actec.org</a>><br><b>Subject:</b> [EstGift] Formula General Power to Capture Income Tax Basis Adjustment</p></div></div><p class="MsoNormal"> </p><p class="MsoNormal">Wondering if anyone is using a formula General Power of Appointment in Irrevocable Trusts so that the second-to-die spouse includes the irrevocable trust assets in their estate to the extent they have available estate exemption, in order to take advantage of step-up in basis.</p><p class="MsoNormal"> </p><p class="MsoNormal">For example, a credit-shelter trust is created at first death. Second-to-die spouse has unused/unusable estate exemption. Instead of trying to terminate the credit shelter trust to include the asset in spouse’s estate, it would be nice to have drafted in a formula GPA to force assets in second-to-die spouse’s estate, but only to the extent of that person’s available estate exemption, and then get basis adjustment on those assets. Thought being to direct that the first assets of the trust over which power is exercisable are those assets with largest percentage difference between FMV and income tax basis.</p><p class="MsoNormal"> </p><p class="MsoNormal">If anyone has drafted such a provision or has thoughts about traps of using such a formula in drafting, your thoughts are appreciated.</p><p class="MsoNormal"> </p><p class="MsoNormal">-Eileen</p><p class="imprintuniqueid"><b><span style="font-family:"Arial",sans-serif;color:black">Eileen M.</span></b> <b><span style="font-family:"Arial",sans-serif;color:black">Day</span></b><br><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Partner</span><br><span style="font-size:7.5pt;font-family:"Arial",sans-serif;color:#f04e23"><br></span><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#f04e23">STINSON LLP</span><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#ff4d00"><br></span><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">50 South Sixth Street, Suite 2600</span><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#ff4d00"><br></span><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Minneapolis, MN 55402</span><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#ff4d00"><br></span><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Direct: 612.335.7026</span><b><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#f04e23"> \ </span></b><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">Mobile: 612.669.0299</span><b><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#f04e23"> \ </span></b><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#0563c1"><a href="https://www.stinson.com/people-EileenDay">Bio</a></span><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#ff4d00"><br></span><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black"><br>Assistant: </span><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#0563c1"><a href="mailto:MPL.LAATeam4@stinson.com">MPL.LAATeam4@stinson.com</a></span><b><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#f04e23"> \ </span></b><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:black">612.335.1702</span><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#ff4d00"><br><br></span><b><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#32465f"><a href="http://www.stinson.com"><span style="color:#32465f">STINSON.COM</span></a></span></b></p><p class="imprintuniqueid"><span style="font-size:10.0pt">This communication (including any attachments) is from a law firm and may contain confidential and/or privileged information. If it has been sent to you in error, please contact the sender for instructions concerning return or destruction, and do not use or disclose the contents to others.</span></p></div></body></html>