Earlier GST exemption relief letter corrected

Plain-English summary

The IRS corrected and modified an earlier private letter ruling concerning generation-skipping transfer tax exemption. The earlier ruling incorrectly said the executor proposed to sever a marital trust into exempt and nonexempt shares and included law about qualified severances under section 2642(a)(3). This correction deletes that description, ruling request, and legal discussion. It states instead that the executor requested more time to allocate GST exemption under section 2632 to an exemption trust in an amount producing a zero inclusion ratio, with any remaining exemption allocated to the marital trust. The original ruling remains unchanged in every other respect.

Ruling snapshot

• Question: What correction was required to the earlier letter's description of the executor's GST exemption allocation request?
• Outcome: Prior private letter ruling modified and corrected
• Key authorities: IRC §§ 2632, 2642(a)(3), 2642(g); Treas. Reg. § 301.9100-3

Full text (IRS public release)

Internal Revenue Service                                       Department of the Treasury
                                                               Washington, DC 20224

Number: 202350014                                              Third Party Communication: None
Release Date: 12/15/2023                                       Date of Communication: Not Applicable
Index Number: 9999.00-00, 9999.98-00
                                                               Person To Contact:
------------------------------------                           ---------------------, ID No. -----------------
---------------------------------------                        Telephone Number:
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----------------------                                         Refer Reply To:
-----------------------------                                  CC:PSI:B04
                                                               PLR-117360-23
Re: ----------------------------------                         Date:
                                                               September 18, 2023




Legend

Estate           =         ----------------------------------
                         ------------------------

Dear --------------:

      This letter modifies and corrects the ruling issued as PLR-105637-23 on
August 21, 2023. In the paragraph immediately preceding the “LAW AND ANALYSIS”
section, the letter ruling includes the following statement and ruling request:

        Executor proposes to sever the Marital Trust, pursuant to § 2642(a)(3), to
        create a GST Exempt Marital Trust and a GST non-Exempt Marital Trust.
        Executor represents that Marital Trust will be divided on a fractional basis
        and that the GST Exempt Marital Trust will receive a fractional share of the
        total of all trust assets equal to the applicable fraction of Marital Trust
        immediately before the severance. Executor requests an extension of
        time under § 2642(g) and § 301.9100-3 to allocate Decedent’s GST
        exemption to the GST Exempt Marital Trust on a late-filed Form 706 for
        Decedent’s estate.

     In the “LAW AND ANALYSIS” section, the letter ruling includes provisions under
§ 2642(a)(3) of the Code related to the qualified severance of a trust.
       The letter ruling is modified by deleting the statement and ruling request recited
above as well as the qualified severance provisions under § 2642(a)(3). The letter is
further modified by adding the ruling request made by Executor as follows:
        Executor requests an extension of time under § 2642(g) and § 301.9100-3
        to allocate Decedent’s GST exemption under § 2632 to the Exemption

PLR-117360-23                                            2

       Trust in an amount sufficient to create an inclusion ratio of zero and to
       allocate any remaining GST exemption amount to the Marital Trust.

       In all other respects, Private Letter Ruling 105637-23 remains the same.

      This modification letter, as well as the private letter ruling it modifies, is directed
only to the taxpayer who requested it. Section 6110(k)(3) of the Code provides that
such letters may not be used or cited as precedent.

    In accordance with the Power of Attorney currently on file with the Internal
Revenue Service, we are sending a copy of this letter to your authorized representative.

                                               Sincerely,

                                               Associate Chief Counsel
                                               Passthroughs & Special Industries



                                         By: ______________________________
                                             Leslie H. Finlow
                                             Senior Technician Reviewer, Branch 4
                                             Office of the Associate Chief Counsel
                                             (Passthroughs & Special Industries)


Enclosure (1)

       Copy for § 6100 purposes.


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