0505006 Informal Interpretation

From: : (redacted)Sent:Friday, May 20, 2005 3:03 PM
To: Verne, B. Michael
Cc: : (redacted)
Subject: Re: HSR Treatment of a Settlor's RetainedAnnuity under a GRAT

Mr. Verne,

This email is to confirm your advice to : (redacted) and to me in ourconversation of earlier this week (Tuesday, May 17), that a settlor's retainedannuity payment under a GRAT does not constitute a "reversionaryinterest" for purposes of Rule 801.1(c)(3), and that the settlor would notbe deemed to "hold" personally the assets or voting securities of theGRAT trust by reason of the retained annuity payment. As further clarificationin this regard, Informal Staff Opinion 0404025 represents the Staff'sinterpretive position, while Informal Staff Opinion 0304004 does not.