advertisement
Nov 1, 2008 12:00 PM
Rescue Plans for IRAs Left to Marital Trusts
The Internal Revenue Service has been concerned about whether retirement benefit plans qualify for the marital deduction when they're left to a trust that ordinarily qualifies for the marital deduction. Hard to believe that this would even be in doubt, but it has been. In fact, in Revenue Ruling 2006-26
Yet, as farfetched as this may sound, because of a quirk in how the Uniform Principal and Income Act of 1997 (UPIA) defined “income,” the Service found that, in UPIA-compliant states, retirement benefits left in trust did not qualify for its safe harbor for a marital deduction — unless the attorney who drafted the estate plan drafted with this issue in mind. Indeed, surviving spouses might be exposed to audit by the Service asserting that estate tax is due on these retirement benefit plans if they live in states that adopted the UPIA without change or in states that don't have laws addressing this issue.
Sign in to
view the full article
Not a subscriber?
Subscribe & Save
Get immediate access to Trust & Estates onlineSubscriber Benefits
Learn more about Trust & Estates magazine, online article access and our free enewsletters.
Topics of Interest
| Estate Tax | Donor Advised Funds |
| GSTs | Family Offices |
| Private Foundations | Life Insurance |
| 2010 Tax Act News | Industry Trends Surveys |
E-Newsletter Signup
Poll
Topics of Interest
| Estate Tax | Donor Advised Funds |
| GSTs | Family Offices |
| Private Foundations | Life Insurance |
| 2010 Tax Act News | Industry Trends Surveys |
E-Newsletter Signup
advertisement
T&E eNewsletters
Wealth Watch 
Wealth Watch is a free e-newsletter delivered twice a month with expert advice on wealth management from Trusts & Estates.
Latest from Wealth Watch
Tech. Review
Technology Review is a free monthly e-newsletter from Trusts & Estates and nationally renowned expert Donald H. Kelley. It is geared to keeping estate planning lawyers current on the latest tech news they can use.
Latest from Tech. Review
Philanthropy Tax Guide
Each month, Conrad Teitell reports on and analyzes as important tax development governing charitable contributions, including how to maximize the benefits and avoid the pitfalls.
Latest from Conrad Teitell
2011 Trust Glossary
Click here to download the 2011 Trust Glossary
50 Years Ago This Month
| 50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb. |
Conrad Teitell's Guide to Tax Benefits For Charitable Gifts
Click here to view the most up to date guide (September 2011)
Press Releases
advertisement
advertisement
