Section 11 Attribution of Ownership Between Estates and Beneficiaries

• Library: Bus Trans 2005

I.R.C. § 318(a)(2)(A) provides that stock owned, directly or indirectly, by or for an estate will be considered as being owned proportionately by its beneficiaries. Attribution is on a proportionate basis, rather than an actuarial basis, as is the case of trust attribution.

The term “beneficiary” includes any person entitled to receive property of a decedent in accordance with a will or through intestate succession. A person is not a beneficiary unless the person has a direct present interest in the property held by the estate or the income produced by the property. An estate is considered to own property...