Attempted sale of remainder did not keep property out of estate

Article Abstract:

The US District Court of North Carolina held that property is includable in a taxpayer's estate unless the taxpayer has been compensated for the full fair market value in Pittman. The taxpayers had transferred a remainder interest to their daughter but retained lifetime use of the property in an attempt to remove it from their estate value. The Court allowed that the value should be reduced by any cash payment or promissory notes but that the transfer of the remainder value did not exclude the whole property.

Commercial Banks, Trust, Fiduciary, and Custody Activities, Estate & Tax Planning, Estate planning, Estate tax, Estate taxes, Transfer (Law)

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A charitable remainder trust can't be a QSST, IRS determines

Article Abstract:

The IRS ruled in Rev Rul 92-48 that qualified Subchapter S trust and charitable remainder trust elections could not be used for the same trust because they result in incompatible tax consequences. The trust was ruled a charitable remainder trust but not a Subchapter S trust because the trust was ineligible as an S corporation shareholder. Other provisions in the tax treatment of the two types of trusts are also inconsistent such as distribution of assets at termination.

S corporations, Charitable remainder trusts

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Property included in estate despite sale of remainder

Article Abstract:

The US Tax Court's Estate of D'Ambrosio decision held the gross estate had to include the decedent's stock in which she had retained an income interest after the sale of her remainder interest. The estate maintained the stock was excluded under the bona fide sale exception. However, the Tax Court's reasoning may be flawed because, in effect, it increases the size of the estate by including the income from the remainder interest transfer payment.

Decedents' estates, Valuation

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