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The Internal Revenue Service recently issued some private letter rulings (PLRs) that shed light on its thinking on the trust payment of estate expenses, non-taxable trustee-to-trustee transfers, lump sum distributions and waivers of the 60-day rollover rule. ESTATE EXPENSES As background: An estate cannot be a designated beneficiary for purposes of required minimum distributions (RMDs).1 Furthermore,
Marcia Chadwick Holt, partner, Davis Graham & Stubbs LLP, Denver
The Internal Revenue Service recently issued some private letter rulings (PLRs) that shed light on its thinking on the trust payment of estate expenses, non-taxable trustee-to-trustee transfers, lump sum distributions and waivers of the 60-day rollover rule.
ESTATE EXPENSES
As background: An estate cannot be a designated beneficiary for purposes of required minimum distributions (RMDs).1 Furthermore, if an estate is one of many beneficiaries of a trust, the other trust beneficiaries do not qualify as designated beneficiaries. If there is no designated beneficiary, RMDs must be made over five years if the decedent died prior to his required beginning date (RBD) and over the dec...
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