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 Year 1, Husband funded Trust with $ a.
Husband and his wife, Wife, hired Attorney to prepare their Year 1 Forms 709, United States Gift (and Generation-Skipping Transfer) Tax Returns. On each form, Husband and Wife signified their consent to treat the transfers as having been made one-half by each spouse under § 2513. Wife elected out of the automatic allocation rules with respect to the gift to Trust in Year. Attorney correctly reported the transfer to Trust as an indirect skip on Schedule A, Part 3. Attorney also allocated GST exemption to the transfer on Schedule D, Part 2, Line 6. However, Attorney failed to attach a Notice of Allocation for this transfer.
You have requested a ruling that Wife substantially complied with the requirements for making an allocation of GST exemption to the Year 1 transfer to Trust.
See PLR 201731010 by clicking here.
See PLR 201731005 by clicking here.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.