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Category: Estate & Gift Tax Developments (page 1 of 6)

PLR 201737001 + PLR 201737008: Tax Treatment of Trust Judicial Reformation

In two virtually identical PLRs, PLR 201737001 + PLR 201737008, the Service ruled on the tax treatment of the judicial reformation to two trusts. In these PLRs, the Service ruled that a proposed reformation of the trust in question would not cause the trust assets to be included in the spouse’s … Continue reading

Est. of Sower v. Commissioner: IRS Allowed to Examine Predeceased Spouse’s Estate Tax Return

In Estate of Minnie Lynn Sower v. Commissioner, , 149 T.C. No. 11 (Sept. 11, 2017), the Tax Court held that the IRS could examine a predeceased spouse’s estate tax return to determine the deceased spousal unused exclusion (DSUE) amount available to the surviving spouse’s estate, finding that the statute … Continue reading

PLR 201735009: Judicial Construction of Trust Does Not Cause Lost of GST Exempt Status

In PLR 201735009, the IRS ruled that modifications and a judicial construction of a trust do not cause the trust to lose its generation-skipping transfer tax exempt
status under Code section 2601.

See ful PLR 201735009 by clicking here. 

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.… Continue reading

PLR 201735005: Inadvertent Tax Payments Not Constructive Trust Additions

In PLR 201735005, the IRS ruled that a trust beneficiary’s inadvertent payment and subsequent reimbursement of federal and state income taxes on trust income do not constitute constructive additions to the trust, will not cause any part of the trust to be includable in his gross estate, and will not … Continue reading

Calvin H. Johnson, Cut Negative Tax Out of Step Up at Death

Calvin H. Johnson, John T. Kipp Chair in Corporate and Business Law at the University of Texas Law School, has published his article, Cut Negative Tax Out of Step Up at Death.  The Abstract is as follows:

In this article, Johnson argues that Congress should exclude double deductions and negative taxes

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Leimberg.Update.2017.08.09: International Update, No Taxable IRA Distribution where Funds Not Accepted by IRA Custodian & More

Mary Vandenack on McGaugh v. Commissioner – Seventh Circuit Finds No Taxable IRA Distribution Where Taxpayer Wired Funds to Purchase Stock IRA Custodian Refused to Accept Steve Leimberg’s Employee Benefits and Retirement Planning Newsletter Issue:679    07-Aug-17

Steve Leimberg on Rosen v. Prudential: ERISA Fiduciary Duty Charges Dismissed Steve Leimberg’s … Continue reading

Rutkoske v. Commissioner: Tax Court Denies Farmer Conservation Easement Donation Deduction

in Rutkoske v. Commissioner, 149 T.C. No. 6 (Aug. 7, 2017), the Tax Court denied the conservation easement donation deduction to farmers.  The Tax Court Summary is as follows:

In 2009 a limited liability company (LLC) in which Ps were members owned 355 acres of land (property) that it leased to

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PLRs 201731010 + 201731005: GSTT Exemption Allocated to Trust

In PLRs 201731010 + 201731005, the Service allocated GSTT exemption to the trusts in question. The key facts of each, which are identical, are as follows:

On Date 1, in Year 1, Husband created Trust. Trust is an irrevocable trust for the benefit of Husband’s descendants. On Date 2, in … Continue reading

Estate Planning Highlights of the 2017 Texas Legislature by Gerry W. Beyer

Gerry W. Beyer, Texas Tech University School of Law, has made available for download his article, Estate Planning Highlights of the 2017 Texas Legislature. The Abstract is as follows:

This article reviews the highlights of the legislation enacted by the 2017 Texas Legislature relating to the Texas law of intestacy,

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PLR 201729013 and 201729014: CRT – College Endowment Units In CRT Won’t Cause UBTI to College or Trust

In PLR 201729013, the IRS ruled that a contractual arrangement under which a college will issue units in its endowment fund to a CRT, make payments on the units, and be reimbursed to cover costs allocable to the management of the endowment or administration of the CRT, will not generate … Continue reading

Gans + Blattmachr: FLPs + 2036: Not Such a Good Fit – Examination of Powell Tax Court Decision

Mitchell Gans & Jonathan G. Blattmachr have made available for download their forthcoming ACTEC Journal article, “Family Limited Partnerships and Section 2036: Not Such a Good Fit.” The abstract is as follows:

The IRS has struggled to close down abusive family limited partnerships. At first unreceptive to IRS arguments, the

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PLR 201724007: Ruling on Timing of Gift Splitting + GST Allocations

In PLR 201724007, the Service ruled that  gift-splitting and GST tax decisions made for one year were irrevocable due to the statute of limitations, but because the statute had not expired for a subsequent year reallocations could be made.

See full PLR 201724007 by clicking here.

Posted by Lewis J. Continue reading

IRS Provides Simplified Method to Request Portability Election Extension

The Journal of Accountancy reports that the IRS has provided a simplified method of making portability elections in Rev. Proc. 2017-34.  The Journal of Accountancy summary begins as follows:

In a taxpayer-friendly development on Friday, the IRS issued guidance permitting certain estates to make a late portability election if

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Est. of Nancy H. Powell: Transfer to Limited Partnership Includible in Estate

In the Estate of Nancy H. Powell, 148 T.C. No. 18, filed May 18, 2017, the Tax Court held that limited partnership interests were includible in decedents estate. The abstract is as follows:

On August 8, 2008, D’s son, J, acting on her behalf, transferred cash and securities to LP,

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PLR 201719008: Court Ordered Termination Doesn’t Cause GST Tax

In PLR 201719008, the Service ruled that a court-approved termination of a trust will neither cause a beneficial interest to be shifted to a beneficiary who occupies a generation lower than the beneficiaries who held the interests prior to the termination, nor extend the time for vesting of any beneficial … Continue reading

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