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

The automatic allocation (GST trust) rules under IRC section 2632(c) are among the most complex provisions in the wealth transfer tax system. Since their enactment in 2000, the IRS has issued little guidance, resulting in frequent misapplication of GST exemption both to trusts unlikely to need it and to trusts that likely will. In addition, the rules can produce ambiguous, unwanted, or unexpected results. This presentation examines these issues and discusses practical ways to address them.

Learning Objectives:

• Identify whether automatic allocation applies to a transfer to a trust.
• Identify how and why to elect in or out of automatic allocation.
• Recognize when the IRS may grant relief for a missed GST election and the basic steps to request relief.