PLR 201834011: Division of Marital Trust – No Gain / Loss

In PLR 201834011, the Service ruled that a division of a marital trust in a proposed division did not cause gain or loss recognition. The Service reasoned that each beneficiary continued to hold all of the interests under identical terms in the assets of the marital trust through the divided trusts before and after the division, and that a partition of jointly owned property is not a sale or other disposition of property if the co-owners of the joint property sever their joint interests but do not acquire a new or additional interest as a result of the transaction. Therefore, neither gain nor loss is realized on a partition.

See full PLR 201834011 by clicking here.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal. 

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