Extract to table

Under IRC § 2642(f)(1), any allocation of GST exemption to property transferred in a transfer subject to an estate tax inclusion period shall not be made before the close of the ETIP

If the grantor dies during the annuity term, the value of the GRAT corpus is includable in the grantor's gross estate under IRC § 2036(a)(1), which provides for inclusion of property transferred by the decedent if the decedent retained the right to income from the property or the right to designate who shall possess or enjoy the property

Third, the allocation of GST exemption must wait until the ETIP closes — that is, until the expiration of each GRAT's annuity term, assuming Jonathan R

This outcome would significantly undermine the planning objectives of the Dynasty Trust and must be addressed through careful allocation strategy and, if necessary, trust severance

The qualified severance must be made on a "fractional basis" as defined in the regulations and must be reported on a timely filed Form 706 or Form 709, as applicable

the trust instrument provides that the trust must terminate and distribute to non-skip persons before the transferor reaches age 46, etc