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Income Beneficiaries of Older Trusts Should Consider Making Unitrust Election - February 4, 2007

In a recent private letter ruling (15529705), the IRS has confirmed that a generation skipping transfer (GST) tax grandfathered trust will not lose its exemption if a court modifies the trust to permit the income beneficiary to receive unitrust payments.The facts for the ruling are as follows. Taxpayer creates a testamentary trust (a trust in hisher will) that specifies that when the taxpayer dies the trust will pay income to taxpayers surviving spouse and upon spouses demise the trust will...
http://www.colorado-estateplanning-attorney.com/2007/02/income-beneficiaries-of-older-trus...
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