Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Tuesday, August 30, 2011

IRS Issued Five Rulings Regarding Gift, Income, and Generation-Skipping Tax Consequences When Transferring Trust Assets

Taxes 1 Brian Spring (Associate Editor, Wealth Strategies Journal) recently posted on the five rulings the IRS issued in PLR 201134017. The post is below, in full:

The IRS has issued five rulings regarding a proposed transfer of assets from a trust, which is exempt from the generation-skipping tax, to a substantially similar trust.

Regarding the proposed transfer of assets, the IRS ruled that:

  1. the Receiving Trust would not lose its zero inclusion ration for generation-skipping tax purposes;
  2. a beneficiary's power to remove and replace special trustees are not general powers of appointment under sections 2041 and 2514;
  3. the transfer of assets to the Receiving Trust would not result in transfers of any beneficial interest that is subject to tax under section 2501;
  4. neither the beneficiaries nor the trusts would recognize gain or loss under section 61 or section 1001; and
  5. the holding period of the receiving trust in the assets transferred from Trust 1 will include the holding period of Trust 1 for each asset.

See Brian Spring (Associate Editor, Wealth Strategies Journal) PLR 201134017 on Income, Gift, and Generation-Skipping Tax Consequences of Trust Asset Transfers, Aug. 29, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2011/08/irs-issued-five-rulings-regarding-gift-income-and-generation-skipping-tax-consequences-when-transfer.html

Generation-Skipping Transfer Tax, Gift Tax, Income Tax, Trusts | Permalink

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