2403007 Informal Interpretation

us-ftc-hsr-informal-interpretations-1e66167f10e3f69cf313112265e61e582403007 Informal InterpretationGuidance

Date
Rule
801.2
Staff
Kristin Shaffer
Response/Comments

We agree that the trust would be its own UPE, based on the facts you presented.

Question

From: Shaffer, Kristin <kshaffer@ftc.gov>
Sent: Tuesday, March 26, 2024 11:05:05 AM (UTC-05:00) Eastern Time (US & Canada)
To: [Redacted]
Cc: HSRHelp <HSRHelp@ftc.gov>
Subject: RE: Trust - shared right to remove/replace trustee with spouse

We agree that the trust would be its own UPE, based on the facts you presented.

Best regards,

Kristin

From: [Redacted]
Sent: Monday, March 25, 2024 3:35 PM
To: Shaffer, Kristin <kshaffer@ftc.gov>
Cc: HSRHelp <HSRHelp@ftc.gov>
Subject: RE: Trust - shared right to remove/replace trustee with spouse

The trust I am looking at is an irrevocable trust of which both Spouse A and Spouse B are settlors. Spouse A and Spouse B currently serve as trustees. The trust was created for the benefit of the children of Spouse A and Spouse B. Neither Spouse A nor Spouse B is a beneficiary of the trust nor has a reversionary interest in the trust. In the documents establishing the trust, Spouse A and Spouse B are given a shared right to remove and replace the trustees so long as both spouses are alive and have capacity (both of which are currently the case), meaning that neither Spouse A nor Spouse B can individually remove and replace the trustees.

Given the facts above and Interpretation 2104005, it seems that the trust would be its own UPE as Spouse A and Spouse B have a shared right to remove and replace the trustees. Please let me know if you agree.

Sheinberg, Samuel I.
From:
Sent:
To:
Subject:
HSRHelp
Tuesday, March 26, 2024 11 :OS AM
Walsh, Kathryn E.; Berg, Karen E.; Musick, Vesselina; Sheinberg, Samuel I.; Six, Anne;
Whitehead, Nora; Fetterman, Michelle; Burton, June; Larson, Peter
FW : Trust - shared right to remove/replace trustee with spouse
From: Shaffer, Kristin <kshaffer@ftc.gov>
Sent: Tuesday, March 26, 2024 11:05:05 AM (UTC-05:00) Eastern Time {US & Canada)
To:
Cc: HSRHelp <HSRHelp@ftc.gov>
Subject: RE: Trust - shared right to remove/replace trustee with spouse
We agree that the trust would be its own UPE, based on the facts you presented.
Best regards,
Kristin
From:
Sent: Monday, March 25 , 2024 3:35 PM
To: Shaffer, Kristin <kshaffer@ftc.gov>
Cc: HSRHelp <HSRHelp@ftc.gov>
Subject: RE: Trust - shared right to remove/replace trustee with spouse
Hi Kristin:
The trust I am looking at is an irrevocable trust of which both Spouse A and Spouse Bare settlers. Spouse A and Spouse
B currently serve as trustees. The trust was created for the benefit of the children of Spouse A and Spouse B. Neither
Spouse A nor Spouse B is a beneficiary of the trust nor has a reversionary interest in the trust. In the documents
establishing the trust, Spouse A and Spouse Bare given a shared right to remove and replace the trustees so long as
both spouses are alive and have capacity (both of which are currently the case), meaning that neither Spouse A nor
Spouse B can individually remove and replace the trustees.
Given the facts above and Interpretation 2104005, it seems that the trust would be its own UPE as Spouse A and Spouse
B have a shared right to remove and replace the trustees. Please let me know if you agree.
r
Complete printed PDF page 1
From: Shaffer, Kristin <kshaffer@ftc.gov>
Sent: Monday, March 25, 2024 2:11 PM
To:
Cc: HSRHelp <HSR He lp@ftc.gov>
Subject: RE: Trust - shared right to remove/replace tru stee wi th spouse
!EXT - kshaffer@ftc.go~
That informal describes a complicated fact pattern. If you have questions about a specific set of facts, please provide	•them so that we can give guidance.
Best regard s,
Kr istin
Kristin Shaffer
Attorney
Premerger Not ifi cat i on Office
Federal Trad e Commissi on
202-326-23 88 I ksha ffer @ft c. gov
From:
Sent: Monday, March 25, 2024 9:51:06 AM (UTC-05:00) Eastern Time (US & Canada)
To: HSRHe lp < HSRHelp@ftc.gov>
Subject: Trust - sha r ed right to remove/ replace trustee with spouse
Dear PN O:
I wanted to check in on Interpretation 2104005 from 2021. Can you please confirm that it remai ns the posit ion of PNO
that a trust is its own UPE w hen the right to remove and replace the trustees is shared by t wo spouses (and assuming
the trust is irrevocable and the sett lor does not retain a reversionary interest)?
Thanks very much in advance.
Best,
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