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 constitute a gift for gift tax purposes.

See full PLR 201735005 by clicking here. 

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