Section 11 Installment Sale to Irrevocable Trust

• Library: Business Transitions 2009 Supp

Revenue Ruling 2008-22, 2008-16 I.R.B., released April 21, 2008, provides that a grantor nonfiduciary substitution power generally will not trigger estate inclusion under I.R.C. § 2036 or 2038. Revenue Ruling 2008-22 provides that it is a grantor trust not included in the grantor’s estate as long as:

• the trustee has a fiduciary obligation, either under state law or the trust terms, to ensure that the property substituted is truly of equivalent value; and

• the power to substitute cannot be used in a...