bonuses are those added to a policy at the end of each financial year.
Because X has a reversionary
interest of more than 5%, the trust is considered a grantor trust under Sec.
The buyer was working off a reversionary
yield of 7% being achieved when the rents are reviewed again in September this year.
The bonus depends on a policy's type and value, but will typically add around 40 per cent to the 1997 reversionary
bonus received by most policy-holders.
However, most asset protection trusts would retain a reversionary
interest (unlike the trust in the ruling).
The strong cashflow and reversionary
potential ensured strong interest from overseas buyers.
Those who declared their payouts this week all trimmed the reversionary
bonuses that are added to the permanent value of a with-profits policy and can never be withdrawn.
673(a) provides that a grantor will be treated as the owner of any portion of a trust in which he has a reversionary
interest in either corpus or income, provided that such reversionary
interest exceeds 5% of the value of that portion.
The company stated that the plan offers a guaranteed reversionary
bonus of 3% per annum during the premium payment term.
33] It is unclear what happens when encumbered property is transferred to an alimony trust, with the transferor spouse retaining a reversionary
interest in the corpus of the trust.
The vesting of the reversionary
interest took effect in September 2005 and thus had the effect of limiting daily production to 3,716 BOE for the third quarter of 2006.
It already owns more than 2,700 reversionary
properties with an open market value of pounds 345m.
673 as an owner of a trust by reason of a reversionary
interest in corpus, both ordinary income and other income allocable to the corpus are "owned" by the grantor.
The option is to purchase Venoco's interest in Hastings Field, less a 2% override and a 25% reversionary
interest following payout, as defined.
It is believed that there is a lot of reversionary
income from the Crown Prosecution Service, given the current bullish mood in office agency where there is a shortage of high-quality space and a surfeit of demand.