The Internal Revenue Service is seeking comments on proposed rules that would affect inclusion of trust property in the grantor’s estate.
The IRS published a draft of the regulations in a notice of proposed rulemaking that appears today in the Federal Register.
The regulations, which concern “graduated retained interests,” would provide guidance on the “portion of trust property includible in the grantor’s gross estate if the grantor has retained the use of the property, the right to an annuity, unitrust, graduated retained interest, or other payment from such property for life, for any period not ascertainable without reference to the grantor’s death, or for a period that does not in fact end before the grantor’s death,” officials write in a preamble to the draft regulations.
The proposed regulations would affect estates that file Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return.
The IRS published a draft of another set of regulations relating to the relationship between trust assets and taxable estates in July 2007.
The IRS decided to address some of the comments on the July 2007 draft in a second set of regulations, rather than in the final version of the first set.