Unlimited Duration Trusts - Minnesota CLE
Unlimited Duration Trusts - Minnesota CLE
Unlimited Duration Trusts - Minnesota CLE
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Tax Consequences of<br />
Decanting:<br />
• Income Taxes:<br />
– Decanting is a non-recognition event:<br />
• Transfer disregarded for income tax purposes<br />
• Constitutes trust modification and second trust is treated as continuation of original<br />
trust<br />
– PLR 200736002<br />
• New trust tax ID #?<br />
• DNI shifts to new trust<br />
• If decanting from grantor trust to non-grantor trust – Possible taxes if negative basis<br />
assets<br />
• Tax issues if decanting to foreign trust?<br />
• Estate & GST Taxes:<br />
– Generally cannot extend the RAP of either grandfathered or exempt GST trusts<br />
• Grandfathered – Treasury reg. 26.2601-1(b)(4)<br />
© South Dakota Trust Company, LLC – All Rights Reserved<br />
74
Change language