Private Letter Rulings
PLR
200431005 Donor Requests Extension to Allocate GSTT Exemption to CRAT:
Diana Donor created a charitable remainder annuity trust (CRAT) for the benefit of Charity and Bobby Beneficiary. Bobby was the only noncharitable beneficiary. Because Bobby was more than 37½ years younger than Diana, he was deemed a skipped person for generation-skipping transfer tax (GSTT) purposes.
PLR
200507010 Converting Testamentary Trust to Unitrust - GSTT Exemption Preserved:
Decedent passed away and created a testamentary trust. The trust paid income to spouse, son and then the grandchildren of decedent. The executor of decedent allocated generation skipping tax exemption to the trust in order to prevent the trust from being required to pay generation skipping tax upon the termination of the trust or if there were taxable distributions to skip persons.
PLR
200620011 Appointing Additional Trustee Does Not Jeopardize Generation-Skipping Transfer Tax (GSTT) Exempt Status:
Father's will established Trusts A and B. Trust A paid net income to Mother for life with the remainder to be distributed according to Mother's power of appointment.
PLR
200626007 Timely Allocations of GSTT Exemption:
T established an irrevocable trust for children and grandchildren. In Years 1-6, T transferred cash and other assets to the trust. Each year, T timely filed Form 709 and reduced his GSTT exemption.
PLR
200626008 Extension Granted to Make GSTT Exemption Allocations:
H and W established two irrevocable trusts. Trust 1 is for the benefit of D and her descendents and Trust is for the benefit of S and his descendents. After funding the trusts, H and W filed Form 709, the United States Gift and Generation Skipping Transfer Tax Form. H and W elected to treat the gifts as made one-half by H and one-half by W as permitted under Sec. 2513.
PLR
200752026 Conversion to a Total Return Trust Won't Cause Trust to Lose Its GST Tax Exemption:
A created an irrevocable trust and passed away. At the request of Trustees, Court divided the trust into four separate trusts for A's children, one of which was created for the benefit of Child 1 and his descendents.
PLR
201108002 Extension to Allocate GSTT Exemption:
An irrevocable trust ("Trust") was set-up by Husband to benefit children and remote issue. On Date 1, Husband and Wife ("Taxpayers") each transferred X% interested in a limited partnership to Trust.
PLR
201231002 Extension Granted to Allocate GSTT Exemption:
In Year 1, Taxpayer established and funded Trust with generation skipping transfer ("GST") potential.
PLR
201242002 IRS Allows Trust Severance, Reverse QTIP Election:
Decedent died, survived by Spouse, Son and grandchildren. Article IV of Decedent's will provided that upon her death the residue of the estate should pass to Trust.
PLR
201312018 Extension Granted to Elect Out of Automatic GSTT Exemption Allocation:
Taxpayer created an irrevocable trust ("Trust") on Date 1 for the benefit of his sister and nephew. Trust was prepared by Attorney 1 and property was transferred to Trust on Date 2. Taxpayer filed a tax return for Year 1.
PLR
201316011 Extension Granted to Sever Trust, Make Reverse QTIP Election:
Decedent died survived by Spouse. Decedent's will provided that the residue of his estate would pass to Trust. On Decedent's death Trust would be divided into two trusts: Trust A and Trust B. Trust A was to pay out income to Spouse for life and then to Spouse's estate upon her death.
PLR
201817005 GSTT Allocation Extension Granted:
Decedent created two irrevocable trusts on Date 1 for the benefit of Decedent's sons and descendants. Decedent made additional transfers to these trusts in later years, each of which was prior to December 31, 2000.
PLR
201836004 Allocations of GSTT Exemptions are Void:
Taxpayer established three irrevocable trusts, one for each of his children. The terms of each trust were identical, except for the named primary
beneficiary.
