EST2613. It's 10 pm, do you know if your trust is a GST trust?

The automatic allocation (GST trust) rules under section 2632(c) are some of the more complex rules in the federal wealth transfer tax law. Yet, since the enactment of section 2632(c) in 2000, the IRS has issued no regulations and very little guidance interpreting the rules. As a result, there are many common situations where GST exemption is applied to trusts that are unlikely ever to need it and where GST exemption is not applied to trusts that are likely to need it. Additionally, there are situations where the application of automatic allocation is ambiguous. This presentation will discuss these ambiguous, unwanted and unexpected automatic allocation results and what you can do to remedy them.

Learning Objectives:

• Ability to apply the automatic allocation rules to a trust to determine whether automatic allocation has been allocated to any given transfer to a trust.
• Understanding how and why to elect in or out of automatic allocation.
• Understanding under what circumstances the IRS will grant relief to make a missed GST election, the standards for the IRS's grant of relief, and the basics of how to apply for relief.