PLR 129745-11: Grantor Treated as Owner of Trust

In a Private Letter Ruling, the IRS ruled that (1) for purposes of section 678 the Primary Beneficiary will be treated as the owner of the trust; (2) that at the time of the Primary's Beneficiary's death, the gross estate will include the corpus of the estate up to the value withdrawn by the Primary Beneficiary; and (3) that the Primary Beneficiary's power to withdraw any contribution to trust constitutes a general power of appointment with the meaning of section 2041(b)(1).

See PLR 129745-11 (Jan. 11, 2012)

Posted by Myriam Clerge, Associate Editor, Wealth Strategies Journal