Certain revocable and testamentary trusts that wind up

A reasonable period of settlement intervenes before a revocable trust that becomes irrevocable is considered a split-interest trust, in two situations:

1. The trust becomes irrevocable upon the death of the decedent-grantor, or
2. The trust was created by will, and the trustee is required to distribute all the net assets in trust or free of trust to both charitable and noncharitable beneficiaries.

After the settlement period, the trust is considered a split-interest trust or a charitable trust, whichever applies.

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