Washington (Sept. 7, 2004) -- The Internal Revenue Service has proposed regulations regarding the predeceased parent rule of the generation-skipping transfer tax. In certain situations, the predeceased parent rule may eliminate the generation-skipping transfer tax.
“After studying the application of the rule to a variety of circumstances, we concluded that we should exercise the authority granted to us in the statute to issue these regulations,” stated acting assistant secretary for tax policy Gregory F. Jenner. “We believe that the proposed regulations issued today will provide appropriate relief to more taxpayers.”
The proposed regulations implement statutory changes that expanded the application of the predeceased parent rule to additional transfers and recipients.
The proposed regulations also make the rule easier to apply, provide that certain adoptions may reduce the generation-skipping transfer tax, and provide guidance regarding the application of the rule in particular situations.
-- WebCPA staff
