IRS Proposes Private Trust Firm Ruling

Internal Revenue Service officials have come out with a draft of a document that could affect how well trust arrangements will protect families’ estates.

IRS officials have published the proposed revenue ruling in IRS Notice 2008-63, which concerns transfers with a retained life estate.

The ruling focuses on a family that creates a private trust company to serve as the trustee of trusts having family members as grantors and beneficiaries.

Officials discuss use of private trust companies by 3-generation families in states that have and have not created private trust company statutes.