State Statute Throws Beneficiary a Lifeline!

Private Letter Ruling (“PLR”) 201706004 addresses a beneficiary designation issue. Taxpayer died owning an individual retirement account (“IRA”). The beneficiary designation indicated that taxpayer’s trust was the beneficiary. The only problem? There was NO trust created by taxpayer! The custodian of the IRA found no trust, the taxpayer’s will referenced…

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Improper GSTT Exemption Allocation…IRS Grants Relief!

The generation skipping transfer tax (“GSTT”) is a harsh tax (40%) imposed on certain transfers to grandchildren and certain individuals in that same generation. Fortunately, the Internal Revenue Code (the “Code”) provides a GSTT basic exclusion amount (the “Exemption”) which is the same amount as the basic exclusion amount for…

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