On November 28, 2011, the Treasury Department issued T.D. 9556, providing final regulations on the disclosure of reportable transactions related to generation-skipping transfers. The final regulations modify previous final regulations issued in 2007 and do not deviate from 2009 proposed regulations. Commentators expressed concern that the proposed regulations may permit a corporate fiduciary to be treated as a material advisor merely by acting as an executor or trustee. However, the preamble made clear that the regulations would treat a fiduciary as a material advisor only in situations where the fiduciary had provided material aid or advice with respect to the transaction and the fiduciary directly or indirectly derived gross income in excess of $50,000, in the case of a transaction in which substantially all tax benefits were provided to natural persons, or $250,000, in the case of any other transaction.
IRS Issues Final Regulations on Disclosure of Reportable Transactions for Generation-Skipping Transfers
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