PLR 20100709: IRS Lays Out Tax Consequences for Amendment and Restatement of Trust

In PLR 20100709, the IRS ruled that as long as certain requirements are met, a settlor's sons will be transferring a term interest in a residence by gift under section 2501 and therefore, section 2702(a)(1) and (2) won't apply to the proposed amendment and restatement.

Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.