Article On Practical Considerations For Decanting

Brandon A.S. Rose (Loeb & Loeb LLP) recently published an article entitled, Practical Considerations for Decanting, 30 Prob. & Prop. 2 (2016). Provided below is an excerpt from the article:

The benefit of decanting is that the assets from the First Trust will be distributed to the improved Second Trust, and, if implemented correctly, the transaction avoids adverse gift, estate, generation-skipping transfer (GST), and income tax consequences. As a caveat, the Treasury has not yet issued any guidance on decanting, and this transaction was added to the no ruling list in 2011. See Rev. Rul. 2011-3. Because many well-regarded advisors have provided thoughtful commentary on the tax effects of decanting, this article focuses on the proper implementation of decanting and discusses practical points and related tax issues.