IRS PLR: Rulings on Trust Fiduciary Powers in Light of States’ Statutes (IRC §2041)

The IRS ruled as follows regarding fiduciary powers associated with two trusts the trustee-beneficiary of which lived in a certain state when it enacted “Statute 1” and moved to another state where “Statute 2” was in effect at the time of his death, each statute similarly limiting self-benefiting distributions to the trustee’s health, education, maintenance, or support as described under tax code Section 2041 and Section 2514. (1), (2) As Decedent’s power to distribute corpus to himself is limited by Statute 1 to an ascertainable standard as described in tax code Section 2041(b)(1), he didn’t ...