Trust and Estate and Gift

This section contains the latest developments related to trust, estate, and gift tax policies.

Estate Tax Proposed in Presidents Obama's Budget

AICPA Announces Release of Joint "Report on Reform of Federal Wealth Transfer Taxes" The central concern of this Report is to assess—on the basis of simplicity, compliance, and consistency of enforcement—the temporary repeal of the estate and generation-skipping transfer (GST) taxes, the phase-out period, the continuation of the gift tax after repeal, the modified carryover basis rule, and the alternatives to federal wealth transfer tax repeal. Learn More>>   AICPA Comments on Proposed Regs on Affect of Post-Death Events on Estate Valuation On August 8, 2007, the AICPA asked for changes to the proposed regulations under section 2053 on the affect of post-death events on valuing contingent liabilities of the estate. Learn More>>

AICPA Requests Guidance on Allocating Indirect Deductions for CRTs June 26, 2007. This letter requests IRS provided guidance on the allocation of indirect deductions for CRTs. Learn More>>   AICPA Requests Guidance on Split Gifts When Donee Spouse Has an Interest June 26, 2007. This letter requests IRS guidance on the ability to split gifts under section 2513 when the donee spouse has an interest in the trust but all the transfers made to the trust during the year may be withdrawn by trust beneficiaries. Learn More>>   AICPA Asks for Simplified Extension Procedure to Elect Out of Automatic GST Allocation June 26, 2007. This letter requests IRS provide a simplified procedure to obtain extension of time to elect out of the automatic allocation of GST exemption to indirect skips, similar to Rev. Proc. 2004-46. Learn More>>   AICPA Asks for Guidance on GST Allocation at the End of the ETIP June 26, 2007. This letter requests IRS guidance on the allocation of GST exemption to a trust at the end of the estate tax inclusion period (ETIP) or electing out of the automatic allocation rules at the end of the ETIP. Learn More>>   AICPA Comments on Private Annuity Regulations These March 7, 2007, comments cover AICPA concerns with the proposed regulations on private annuities. Learn More>>   AICPA Comments on Foreign Trust Reporting Forms On January 31, 2007, the AICPA submitted comments to the IRS on various foreign trust reporting issues. The comments address issues related to foreign trusts, foreign gifts, Canadian registered education savings plans, and nonresident aliens and Notice 97-34 and various foreign trust regulations. The comments also include 15 specific recommendations related to revisions, filing changes, and extensions for Forms 8891, 3520, and 3520-A, and 1040NR, and creating a Form 1041NR for foreign grantor trusts with U.S. owners. Learn More>>   AICPA Repeats Estate Tax Reform Recommendations This June 22, 2006, letter to Congressional tax-writers recommends estate tax reform priorities. Learn More>>   AICPA Suggests Parameters for Private Trust Company Guidance March 29, 2006. The AICPA submits pre-release comments to the IRS on guidance it believes is needed on the estate, gift, and generation-skipping transfer tax consequences of using a family-owned company as the trustee of a trust. The comments address governance, discretionary trust distribution, and investment powers issues involving private trust companies. Learn More>> AICPA Asks IRS to Clarify Qualified Severance Regs. for GST Trusts February 9, 2005. The AICPA recommends clarifying the proposed regs on qualified severance of a generation-skipping transfer trust, suggesting that the qualified severance rules should apply only if the single trust is divided on a fractional basis. Learn More>>

AICPA Recommends Clarifications to Proposed GST Predeceased Parent Exception Regs December 9, 2004. The article contains AICPA's comments regarding proposed regulations on the predeceased parent rule. Learn More>>

AICPA Recommends Clarifying Regs on "Electing Out" of GST Deemed Allocations November 10, 2004. This letter contains the AICPA comments regarding proposed regulations on electing out of generating-skipping transfer tax deemed allocations under section 2632(c). Learn More>>

1998 Letter Recommending GST Allocation Legislation This 1998 letter by a multi-professional organization task force (including AICPA, ABA, Bankers, ACTEC) was sent to Congress on the need for legislation on GST exemption allocation. Learn More>>