In PLR 201013002, the IRS ruled the transfer tax consequences of the exercise of a POA. The service determined that exercise of the POA will not cause the property subject to the power to be included in the gross estate of the child beneficiaries. Also, the exercise will not be considered at gift from the children and, therefore, the children will not be considered trasferors of the property. The IRS reasoned that the power granted the trust instrument is not a general POA.
Posted by Jamie Delman, Associate Editor, Wealth Strategies Journal
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