Probate Order Ended Power to Add Beneficiaries When Issued

Date: June 22, 2021

CC:PSI:804:DGespass

to:
Lisa Piehl, Program Manager, Estate & Gift Tax Policy
(SE:S:E;HQ:SEP:E&G)

from:
Melissa C. Liquerman
Branch Chief, CC:PSI:804

subject:
* * *

This memorandum concerns an issue arising during the processing of the above-captioned taxpayers’ * * *.

* * *

A probate court order, issued in * * *, extinguished the taxpayers’ power to add beneficiaries as of that date. See Rev. Rul. 73-142, 1973-1 C.B. 405 (court order effectively eliminated power regardless of whether the court order was entered pursuant to state law properly applied) and Rev. Rul. 93-79, 1993-2 C.B. 269 (retroactive reformation not binding on third parties).

* * * Under 2642(f)(1), any direct skip transfer is treated as occurring in * * *, the close of the ETIP. * * *.

If you have any questions, please call Daniel Gespass at (202) 317-4632.

Melissa C. Liquerman
Branch Chief
Office of the Associate Chief Counsel
(Passthroughs & Special Industries)