Right to Appoint a Successor Trustee as a Retained Interest Triggering Inclusion of Trust Value in Grantor's Estate - Revenue Ruling 79-353, The
Loading...
Authors
Shanahan, Colleen A.
Issue Date
1981
Volume
14
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|The right of the grantor of a discretionary trust to determine who will beneficially enjoy the trust property may subject the grantor's gross estate to adverse tax consequences. This may be so even if he has put the trust property beyond his own power to claim the enjoyment from the transferred property or its income for his own benefit. An example of a retained power to designate the beneficial enjoyment of a trust is illustrated in United States v. O'Malley. The grantor of the O'Malley trust retained as trustee the right to accumulate trust income or to pay it to the income beneficiaries. The Supreme Court determined that the grantor had retained too much control over the property and included the value of the trust in the grantor's gross estate...
Description
Citation
14 Creighton L. Rev. 941 (1980-1981)
Publisher
Creighton University School of Law