Notice 2008-116 Provide Interim Guidance on Section 67 Limitations on Trusts & Estates

Notice 2008-116 provides interim guidance with regard to the application of the 2-percent floor under section 67 to certain investment advisory fees.   Specifically, this notice provides that, for taxable years beginning before January 1, 2009, non-grantor trusts and estates will not be required to "unbundled" a fiduciary fee into portions consisting of costs that are fully deductible and costs that are subject to the 2-percent floor.
 
Notice 2008-166 will be in IRB 2008-52, dated December 29, 2008.

Posted by Lewis J. Saret, General Editor, Wealth Strategies Journal.