Tax Notes has published an article by Joseph E. Tierney III, Shareholder at Meissner Tierney Fisher & Nichols S.C. The article explains that Section 2511(c) was intended to stop incomplete gifts, which before the repeal of the estate tax were included in the gross estate of the donor, from permanently escaping transfer taxes upon the death of a donor. This objective is accomplished by turning transfers in trust into completed gifts unless, pursuant to the grantor trust rules, the donor is the sole owner of the trust. The article also addresses Notice 2010-19, some of the problems it has caused, and the need for more guidance.
See Joseph E. Tierney III, "The Gift Tax, 'Transfers in Trust,' and the Post-EGTRRA Environment," 2010 TNT 72-10, April 15, 2010.
Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.
See Joseph E. Tierney III, "The Gift Tax, 'Transfers in Trust,' and the Post-EGTRRA Environment," 2010 TNT 72-10, April 15, 2010.
Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.
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