IRS Written Determinations
Free IRS private letter rulings, technical advice memoranda, and Chief Counsel advice with plain-English summaries and the official IRS release on every page.
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Modifying a pre-1985 grandfathered trust will not trigger GST tax
A trust created before September 25, 1985 is "grandfathered," meaning it is exempt from the generation-skipping transfer (GST) tax as long as it is not improperly enlarged or changed in ways that…
Late relief to elect out of automatic GST exemption on eleven GRATs (companion ruling)
This is the companion ruling to PLR 202451010, addressing the other spouse in the same married couple. Here the taxpayer personally set up the children's trust and funded eleven grantor retained…
Late relief to elect out of automatic GST exemption on eleven GRAT transfers
A married couple set up eleven grantor retained annuity trusts (GRATs) whose remaining property would pass to a trust for their children when the annuity terms ended. Because the trusts could later…
Taxpayer received time to opt out of automatic GST exemption allocation
A spouse created and funded a trust for family members, including the couple's children, and the trust had generation-skipping transfer tax potential. The couple intended not to allocate GST…
Taxpayer received time to opt out of GST allocation after GRAT term ended
A taxpayer created a grantor retained annuity trust, and when the retained interest ended the remaining property passed to a trust with generation-skipping transfer tax potential. That event closed…
Taxpayer received time to opt out of GST allocation after GRAT term ended
A taxpayer created a grantor retained annuity trust, and when the retained interest ended the remaining property passed to a trust with generation-skipping transfer tax potential. That event closed…
Estate may elect out of automatic GST exemption allocations to two trusts
A taxpayer created and funded separate trusts primarily for a daughter and a son, both with generation-skipping transfer potential. The taxpayer did not intend to allocate GST exemption to the…
Modified lifetime trust retains its generation-skipping tax exemption
An irrevocable trust created before September 25, 1985, had previously been divided into separate trusts for a grantor's grandchildren. A state court conditionally approved modifying one…
Modified lifetime trust retains its generation-skipping tax exemption
An irrevocable trust created before September 25, 1985, had previously been divided into separate trusts for a grantor's grandchildren. A state court conditionally approved modifying one…
Estate receives 120 days to make a reverse QTIP election
A decedent's revocable trust funded a federal marital trust for the surviving spouse, and the estate elected qualified terminable interest property treatment on a late-filed Form 706. The estate's…
Late election out of automatic GST exemption allocation allowed
A taxpayer's spouse funded a grantor retained annuity trust, and the spouses elected to split the gift on their timely gift tax returns. They did not intend to allocate generation-skipping transfer…
Late GST allocation opt-outs allowed for twelve GRATs
A taxpayer created and funded twelve grantor retained annuity trusts over several years, with each remainder passing to a trust for descendants. The taxpayer did not intend to allocate…
IRS grants a 120-day extension to make a late allocation of GST exemption after the accountant omitted it
A married couple created and funded a trust for their children and more remote descendants, a trust that could later trigger generation-skipping transfer (GST) tax when assets pass to grandchildren…
IRS grants a 120-day extension to make a late allocation of GST exemption after the accountant omitted it
A married couple created and funded a trust for their children and more remote descendants, a trust that could later trigger generation-skipping transfer (GST) tax when assets pass to grandchildren…
Late GST exemption allocations allowed for two trusts
Before 2001, a grantor transferred corporate stock to two trusts for the grantor's children, with descendants receiving the property after each child's death unless a limited appointment was…
Late GST exemption allocations approved for child trusts
Before 2001, a grantor transferred corporate stock to two trusts for the grantor's children. The trustee could support the child and the grantor's spouse, and after the grantor and spouse died, each…
Late GST exemption allocation allowed
A married couple created trusts with generation-skipping transfer tax potential before 2001. Their accountant failed to prepare the required gift tax returns for either spouse, so the wife's GST…
Late GST exemption allocations allowed
A married couple created several trusts with generation-skipping transfer tax potential before 2001. Their accountant failed to prepare the required gift tax returns for either spouse, so the…
Court-approved trust construction and division preserve GST exemption
A trust became irrevocable before September 25, 1985, and therefore was exempt from the generation-skipping transfer tax. Its distribution language was ambiguous about whether a per-stirpes division…
Descendant trust modifications preserve tax treatment
A trust created before September 25, 1985, had already been divided into separate trusts for two grandchildren. A state court approved further changes to one grandchild's trust, including retaining…
Descendant trust modifications preserve tax treatment
A trust created before September 25, 1985, had already been divided into separate trusts for two grandchildren. A state court approved further changes to one grandchild's trust, including retaining…
Extra time granted to elect out of automatic GST exemption allocation on gifts to two trusts
A married taxpayer set up two identical irrevocable trusts, one for each child, and made gifts to them. Gifts to that kind of trust are automatically allocated part of the taxpayer's…
Extra time granted to elect out of automatic GST exemption allocation on gifts to two trusts
A married taxpayer set up two irrevocable trusts, one for each child, and made gifts to them. Gifts to that kind of trust are automatically allocated part of the taxpayer's generation-skipping…
Extra time granted to elect out of automatic GST exemption allocation for a trust
The generation-skipping transfer (GST) tax applies when wealth passes to grandchildren or later generations. Each person has a GST exemption they can allocate to shield transfers from that tax. For…
Extra time granted to elect out of automatic GST exemption allocation for a trust
The generation-skipping transfer (GST) tax applies when wealth passes to grandchildren or later generations. Each person has a GST exemption they can allocate to shield transfers from that tax. For…
Estate received more time for QTIP and reverse QTIP elections
An estate timely filed Form 706, but its accountant did not advise the executor to make QTIP and reverse QTIP elections for a marital trust or include Schedule R. The trust required income…
Spouses get 120 days to allocate GST exemption to transfers made before 2001
Two spouses created separate irrevocable trusts for their children and descendants before 2001, then made additional cash transfers to both trusts that had generation-skipping transfer tax…
Spouses get 120 days to allocate GST exemption to transfers made before 2001
Two spouses created separate irrevocable trusts for their children and descendants before 2001, then made additional cash transfers to both trusts that had generation-skipping transfer tax…
Spouse gets 120 days to opt out of automatic GST exemption allocation
A donor created and funded an irrevocable trust for the donor's children and their descendants, and the donor and spouse elected to split the gift. Their tax professional prepared their gift tax…
Donor gets 120 days to opt out of automatic GST exemption allocation
A donor created and funded an irrevocable trust for the donor's children and their descendants, and the donor and spouse elected to split the gift. Their tax professional prepared their gift tax…
Estate received late relief to sever a marital trust for GST tax purposes
An estate intended to divide a marital trust into generation-skipping transfer tax exempt and non-exempt shares and made related entries on its timely Form 706. Its advisers failed to explain that…
Spouse granted time to elect out of automatic GST allocation
A taxpayer funded a three-year grantor retained annuity trust whose remainder would pass to a separate trust for descendants. The taxpayer and spouse elected gift splitting, so each was treated as…
Taxpayer granted time to elect out of automatic GST allocation
A taxpayer funded a three-year grantor retained annuity trust whose remainder would pass to a separate trust for descendants. The taxpayer and spouse elected gift splitting, so each was treated as…
Estate received more time to allocate the wife's GST exemption
A husband transferred property to an irrevocable trust for the couple's children, and the spouses elected to treat the gift as made one-half by each of them. Their tax preparer knew they intended to…
Husband received more time to allocate GST exemption to trust transfers
A husband transferred property to an irrevocable trust for the couple's children, and the spouses elected to treat the first-year gift as made one-half by each of them. Their tax preparer knew they…
Estate receives extra time to allocate GST exemption
An executor hired the decedent's regular tax professional to prepare an estate tax return, but the professional failed to file it on time. As a result, the estate did not timely allocate the…
Estate receives more time to allocate GST exemption to trust transfers
A donor transferred property to three trusts for descendants and elected with a spouse to treat the gifts as made one-half by each spouse. The donor relied on an accounting firm to prepare the gift…
Estate receives more time to make reverse QTIP election
A decedent's revocable trust created a marital trust for the surviving spouse and directed that trust to be divided into exempt and non-exempt portions if a reverse QTIP election was made. A…
Adult-adoption trust settlement preserves GST exemption and avoids gift tax
A family disputed whether three people adopted as adults qualified as descendants under a settlor's will and therefore shared in several family trusts. The trusts had become irrevocable before…
Family trust compromise keeps GST protection and creates no taxable gifts
Beneficiaries of several family trusts litigated whether three people adopted as adults counted as descendants under the settlor's will. The trusts were irrevocable before September 25, 1985, had no…
Court settlement leaves grandfathered trusts GST-exempt and avoids gifts
Family members disputed whether three adults adopted by grandchildren were descendants entitled to share in trusts created under a settlor's will. The trusts were irrevocable before September 25,…
Beneficiary settlement preserves GST grandfathering without gift tax
A dispute arose over whether three individuals adopted after reaching adulthood were descendants under a settlor's will and beneficiaries of multiple family trusts. Each trust was irrevocable before…
Trust litigation settlement keeps GST exemption and causes no gifts
A trustee asked a state court to decide whether three adults adopted by the settlor's grandchildren qualified as descendants and remainder beneficiaries under the settlor's will. The affected trusts…
Adult-adoptee compromise does not alter trusts' GST or gift tax treatment
Several beneficiaries contested whether adults adopted by members of the settlor's family were descendants under the settlor's will. The family trusts were irrevocable before September 25, 1985, and…
Negotiated adult-adoption settlement preserves grandfathered tax status
The beneficiaries of several old family trusts disagreed about whether three adults adopted by grandchildren were descendants under the settlor's will. Because the trusts were irrevocable before…
Reasonable trust compromise keeps GST exemption and avoids gifts
A long-running family dispute concerned whether three adult adoptees qualified as descendants and remainder beneficiaries under the settlor's will. The family trusts were irrevocable before…
Family settlement does not disturb GST exemption or trigger gift tax
Family trust beneficiaries litigated whether three people adopted as adults qualified as descendants under a will and could share in the trust remainders. The trusts were protected from…
Court-approved beneficiary compromise preserves old trusts' tax protection
A family disagreed over whether people adopted as adults were descendants for purposes of several trusts created under a will. The trusts were irrevocable before September 25, 1985, and had no later…
Adult-adoptee trust settlement retains GST grandfather protection
The trustee and family beneficiaries disputed whether three individuals adopted as adults fit the will's definition of descendants. The family trusts were irrevocable before September 25, 1985, and…
Settlement of adoptee claims preserves trust tax grandfathering
A family trust dispute centered on whether three adults adopted by grandchildren were descendants under the settlor's will. The affected trusts were irrevocable before September 25, 1985, and had no…
Beneficiary dispute settlement leaves grandfathered trusts unchanged for tax
A trustee sought a state-court ruling on whether three adults adopted by grandchildren qualified as descendants under a settlor's will. The family trusts were irrevocable before September 25, 1985,…
Adult-adoption settlement does not change grandfathered trust taxes
A trustee and family members disagreed about whether three adult adoptees qualified as descendants and remainder beneficiaries under a settlor's will. The affected trusts were irrevocable before…
Family compromise preserves GST-exempt trusts without taxable gifts
Family members contested whether three people adopted as adults qualified as descendants under a will and could benefit from several family trusts. The trusts were irrevocable before September 25,…
Court compromise preserves family trusts' GST and gift tax treatment
Beneficiaries disputed whether three adults adopted by grandchildren fell within a will's definition of descendants. The family trusts involved were irrevocable before September 25, 1985, and had…
Adult-adoptee agreement preserves GST grandfathering and avoids gifts
A state-court dispute asked whether three adult adoptees qualified as descendants and potential remainder beneficiaries under a settlor's will. The family trusts at issue were irrevocable before…
Extension granted to elect out of automatic GST exemption allocation
A taxpayer created two trusts for the taxpayer's children and transferred cash to each trust. The taxpayer intended not to allocate generation-skipping transfer exemption to the transfers, but a CPA…
Estate receives more time for QTIP and reverse QTIP elections
A decedent's revocable trust divided its marital share between an exempt marital trust and a non-exempt marital trust for the surviving spouse. The estate hired a law firm to prepare Form 706 and…
IRS grants extra time to elect out of automatic GST-exemption allocation on 2010 gifts to a grandchildren's trust
A married couple set up an irrevocable trust for their four grandchildren and made gifts to it in 2010. Because the trust benefits only grandchildren (skip persons), those gifts are "direct skips"…
IRS grants extra time to elect out of automatic GST-exemption allocation on 2010 gifts to a grandchildren's trust
A married couple set up an irrevocable trust for their four grandchildren and made gifts to it in 2010. Because the trust benefits only grandchildren (skip persons), those gifts are "direct skips"…
Taxpayer receives 120 days to elect out of automatic GST exemption allocations
A taxpayer created nine annuity trusts whose remainders passed to separate trusts for the taxpayer's children and descendants, and also made direct gifts to those children's trusts. The taxpayer and…
What these documents are
- Private letter rulings (PLRs): A taxpayer asked the IRS to rule on a planned transaction before doing it. The ruling shows exactly how the IRS applied the Code to those facts.
- Technical advice memoranda (TAMs): The IRS National Office answering a question raised during an audit or other proceeding.
- Chief Counsel advice (CCAs): IRS lawyers advising their own field staff on how to apply the law.
- Determination letters: Rulings on exempt-organization matters, such as whether an organization qualifies under § 501(c)(3) or a foundation's grant procedures pass § 4945.
- Not precedent, still useful: Under 26 U.S.C. § 6110(k)(3) none of these can be cited as precedent. They remain the best public window into how the IRS actually rules on facts like yours, and practitioners read them for exactly that.