Relation-back doctriine applied to annual exclusion gift checks

Article Abstract:

The authors discuss case law and IRS rulings which concern the relation-back doctrine which is applied to determine the relevant date for check clearing for purposes of the gift tax exclusion. The law differs for charitable and noncharitable gifts.

Tax Deductions & Exemptions, Tax deductions, Checks, Gift tax

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Annual exclusion gift checks and the relation-back doctrine

Article Abstract:

Several judicial decisions and IRS revenue rulings provide guidance regarding the timing of noncharitable gift check writing, delivery, and depositing for purposes of the annual exclusion. Gifts will be deemed incomplete and their value will be included in decedents' estates in cases where the donor dies before the check is deposited and the relation-back doctrine does not apply to treat the gift as complete at the time of delivery. The cases and rulings concern specific circumstances and distinguish charitable from noncharitable gifts.

Taxation, Decedents' estates

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Final QTIP regulations provide flexibility in postmortem planning

Article Abstract:

Partial qualified terminable interest property (QTIP) elections by executors of estates made to best take advantage of the marital deduction are possible after several court cases where the IRS challenged the practice. The IRS argued that such power held by executors was contrary to QTIP qualifying language in IRC section 2056(b)(7)(B). IRS final regulation 20.2056(b)-7(d)(3) reflects the courts' allowance of contingent income life interests.

Estate Planning, Qualified terminable interest property, Qualified terminable interest property trusts, Marital deduction

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