Article: Eighty-five Thirteen and All That

Russ Willis (The Greystocke Project) recently published, Eighty-five Thirteen and All That, 2024. Provided below is an Abstract:

Last March, IRS dropped a long-anticipated revenue ruling ostensibly negating a questionable argument that had been promoted for quite a few years by some tax planning lawyers, that the income tax basis of assets held in an “intentionally defective grantor trust” should be adjusted to fair market value at the settlor’s death despite the fact they are not includivle in her gross estate for estate tax purposes.

Unfortunately, Rev. Rul. 2023-2, 2023-16 I.R.B. 658 (04/17/23), is expressly limited by conditions that largely swallow the rule. And it leaves intact another revenue ruling, Rev. Rul. 85-13, 1985-1 C.B. 184, that is the actual source of the problem.