IRC Section 645 Is Your FriendIRC Section 645 Is Your Friend
You've got a friend, or at least an ally, in Internal Revenue Code Section 645. Advisors don't often use the words and in the same sentence. But Section 645 offers the trustee of a decedent's revocable trust the opportunity to take advantage of some of the favorable income tax rules that apply to decedents' estates, but not their (formerly) revocable trusts. People often use revocable trusts as testamentary
December 1, 2003
Amy K. Kanyuk, partner, McDonald & Kanyuk, PLLC, Concord, N.H.
You've got a friend, or at least an ally, in Internal Revenue Code Section 645. Advisors don't often use the words “code” and “friend” in the same sentence. But Section 645 offers the trustee of a decedent's revocable trust the opportunity to take advantage of some of the favorable income tax rules that apply to decedents' estates, but not their (formerly) revocable trusts.
People often use revocable trusts as testamentary substitutes, usually in conjunction with a “pour over” will that directs the executor to distribute the residue of the probate estate to the revocable trust. After a grantor's death, his executor and trustee confront a myriad of administrative and tax-related...
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