The Service made the following rulings regarding a renunciation by a spouse of an interest in a marital trust:

  • When Spouse renounces his right, title and interests in Marital Trust, Spouse will not be deemed to have made a gift of the property in Marital Trust under Section 2519.
  • Spouse’s renunciation of his entire interest in Marital Trust  will not result in Spouse’s interest in Marital Trust being valued at zero under Section 2702.
  • Property owned by Marital Trust that is deemed transferred pursuant to Section 2519 will not be included in Spouse’s gross estate under Section 2044(a) because of the application of Section 2044(b)(2).

See full PLR at https://www.irs.gov/pub/irs-wd/201721006.pdf

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