The recent Tax Court decision in McDougall v. Comm’r, 163 T.C. No. 5 (2024) provides important insights into the intersection of Qualified Terminable Interest Property (QTIP) trusts and the associated gift tax implications. This article delves into the case’s facts, legal issues, court holdings, and practical implications for estate planners and tax professionals. Factual Background…
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In a recent decision, the Tax Court addressed the complexities of gift tax and qualified terminable interest property (“QTIP”) rules, providing important insights for estate planning professionals and taxpayers alike.[1] The case centered on the interpretation of provisions related to the taxation of transfers between spouses, and in this context, termination of QTIP interests and…
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A recent Private Letter Ruling (“PLR”) issued by the IRS highlighted the importance of a properly prepared Form 706 Estate (and Generation Skipping Transfer) Tax Return (“706”).[1] The PLR granted the requesting Estate a 120-day extension to make a QTIP election (discussed below) as well as divide the QTIP Trust into a Generation Skipping Transfer…
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