Estates, Trusts & Gifts: New Regs. on Elections for Indirect Skips

¹ TD 9208 (5/29/05).

² REG-153841-02 (7/13/04).

³ See Sec. 2632(c)(3)(B). This provision lists certain exceptions to the general rule that are not germane to this article.

⁴ See Regs. Sec. 26.2632-1(b)(1).

⁵ Relief from this automatic allocation, however, may be available under Sec. 2642(g)(1).

⁶ Sec. 2642(f) defines an ETIP as any period after a transfer, during which the value of the property involved would be includible in the transferor’s gross estate for estate tax purposes, if he or she died.

⁷ See Regs. Sec. 26.2632-1(b)(2)(i). This rule applies unless the taxpayer has (1) elected not to have such rule apply pursuant to Sec. 2632(c)(5)(A)(i) or (2) made an affirmative partial allocation, as provided in Regs. Sec. 26.2632-1(b)(2)(ii).

⁸ See Prop. Regs. Sec. 26.2632-1(b)(2)(ii) and (iii).

⁹ See Secs. 2036 and 2039.

¹⁰ See Regs. Sec. 26.2632-1(b)(2)(iii)(B).

¹¹ See Prop. Regs. Sec. 26.2632-1(b)(2)(iii)(A).

¹² See Regs. Sec. 26.2632-1(b)(4)(iv), Example 1.

¹³ Adapted from Regs. Sec. 26.2632-1(b)(4)(iv), Example 1.

¹⁴ See D. Clifford Crummey, 397 F2d 82 (9th Cir. 1968).