Revenue Procedure 2005-24

The IRS issued Revenue Procedure 2005-24 on April 18, 2005.

This revenue procedure is criticized by Conrad Teitell of the Stamford office of Cummings & Lockwood in his article Inter Vivos CRUTs and CRATs–IRS Opens Pandora’s Box with Spousal “Right of Election,” 31 ACTEC J. 68 (2005), in which he concludes that “[t]his is a Mickey Mouse revenue procedure.”

The article:

• explains how this revenue procedure is a “drastic solution to a non-existent problem,”
• warns about potential “adverse applications well beyond CRUTs and CRATs,”
• recommends that the procedure “be withdrawn or modified,” and
• suggests a “[t]hree-prong solution.”