This Podcast is about the GST. The Tax Court reasserted its previously stated position on the treatment of the GST grandfathering provision for trusts in existence on September 25, 1985 when a party holds a general power of appointment under that trust. It held that the IRS final regulations that treat such a power as removing the trust transfers from the protection of the grandfathering provisions are valid, despite cases decided by the Eighth and Ninth Circuit where it was held the plain language of the grandfathering provisions meant that such powers were to be ignored for this purpose.
The Tax Court and the Second Circuit had previously held such a position to be a valid interpretation of the law. Now it appears the Sixth Circuit, which has not yet been heard on this matter, will gets its say in the Gerson Estate case (127 TC No. 11).
The materials can be downloaded from http://edzollars.com/2006-10-28_Plain_Language.pdf .
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