3. Retention of Life Income Interest Required.
Each
donor transferring property to the Pool shall retain for
himself for life an income interest in the property transferred,
or create an income interest in such property for
the life of one or more named beneficiaries, each of whom
must be living at the time of the transfer of the property
to the Pool by the donor. Such income interest shall be
represented by units of participation in the Pool. In the
event more than one beneficiary of the income interest is
named, such beneficiaries may enjoy their shares of income
concurrently, consecutively or both concurrently and consecutively.
The Institution may also be designated as one
of the beneficiaries of the income interest. The donor
need not retain or create a life interest in all the income
from the property transferred to the Pool provided any
income not payable to an income beneficiary under the terms
of the instrument of transfer is contributed to, and within
the taxable year of the Pool in which it is received is paid
to, the Institution.
