Error: Object reference not set to an instance of an object -- when attempting to create a smart query from a user-defined smart query definition.

CRM users have the ability to create smart query definitions from existing ad-hoc queries that contain “exist in selection” filters. Users may receive the error message above upon selecting the user-defined smart query definition to create a new smart query.
Download and install the latest patch, which contains all fixes from previous patches. If you are running an older version, download and install the latest version and then the patch. 

Recreate the ad-hoc query before creating the new user-defined smart query definition.

Environment

 3.0.516.41
 3.0.516, Service Pack 10

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