PLR 201133004 on Reformation of a Trust to Correct An Error

The IRS has ruled that a court's reformation of a trust would not disqualify the trust's tax qualified status under section 664 nor constitute an act of self-dealing under section 4941. The trust, which was created as a net income with makeup charitable remainder unitrust (NIMCRUT), was reformed to a charitable remainder unitrust (CRUT) to correct a scrivener's error.

See PLR 201133004 (August 19, 2011).

Posted by Brian Spring, Associate Editor, Wealth Strategies Journal.