In a recent Private Letter Ruling, a taxpayer who is a beneficiary of two trust that were created prior to taxpayer’s birth may severe her interest in discretionary payments and contingent beneficial interest. The minor beneficiary intended to to disclaim any right to beneficial interest within nine months of the age of majority, and the IRS concluded in Private Letter Ruling 2014400071 that as long as all other applicable laws are followed the disclaimer may successfully be made without creating federal gift tax liability.
See Debra Doyle, Disclaimers of Distribution Rights Aren’t Transfer to Gift Tax, Wealth Management, Oct. 10, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
