Revenue Ruling 2006-26

AuthorSeymour Goldberg
ProfessionSenior partner in the law firm of Goldberg & Goldberg, P.C., in Woodbury, New York
Pages141-151
141
REVENUE RULING
2006-26
In Revenue Ruling 2006 -26, dated May 30, 2006, the IRS discusses the
marital deduction rules when an IRA is payable to a QTIP t rust.
The ruling discusses the relationship of the Uniform Principal
and Income Act provisions under state law when an IRA is payable to a
QTIP trust.
The revenue ruling follows:
INTERNAL REVENUE BULLETIN: 2006-22
IRA, marital deduction. This rul ing clarifies circumstances under
which the surviving spouse is considered to have a qualifying income
interest for life in an IR A where a marital trust is designated as the IRA
beneficiary for purposes of electing to have the IRA treated as qualify-
ing terminable interest propert y under section 2056(b)(7) of the Code.
Rev. Rul. 2000-2 modified and superseded.
Issue
If a marital tr ust described in Situations 1, 2, or 3 is the named ben-
eficiary of a decedent’s individual retirement account (IRA) or other
qualified retirement plan described in section 4974(c) that is a defined
contribution plan, under what circumstances is the surviving spouse
considered to have a qualify ing income interest for life in the IRA (or
qualified ret irement plan) and in the trust for purposes of an election to
treat both the IR A and the trust as qualified terminable interest prop-
erty (QTIP) under §2056(b)(7) of the Internal Revenue Code?
Fact s
A dies in 2004, at age 68, surv ived by spouse, B. Prior to death, A estab-
lished an IRA described in §408 (a). A’s will creates a testamentary ma ri-
tal tru st (Trust) that is funded wit h assets in A’s probate estate. As of A’s
goL88517_01_c01_p001-166.indd 141goL88517_01_c01_p001-166.indd 141 3/12/13 8:27 AM3/12/13 8:27 AM

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT