Grantor Retained Interest Trusts-Application of Sections 2036 and 2039; Correction, 44648 [E8-17500]
Download as PDF
<![CDATA[
yshivers on PROD1PC62 with RULES
44648
Federal Register / Vol. 73, No. 148 / Thursday, July 31, 2008 / Rules and Regulations
(B) The plan year in which the plan
fails to satisfy the requirements of
paragraph (d)(1) of this section
(regarding use of substitute mortality
tables by controlled group members);
(C) The second plan year following
the plan year in which there is a
significant change in individuals
covered by the plan as described in
paragraph (d)(4)(ii) of this section;
(D) The plan year following the plan
year in which a substitute mortality
table used for a plan population is no
longer accurately predictive of future
mortality of that population, as
determined by the Commissioner or as
certified by the plan’s actuary to the
satisfaction of the Commissioner; or
(E) The date specified in guidance
published in the Internal Revenue
Bulletin (see § 601.601(d)(2)(ii)(b) of this
chapter) pursuant to a replacement of
mortality tables specified under section
430(h)(3)(A) and § 1.430(h)(3)–1 (other
than annual updates to the static
mortality tables issued pursuant to
§ 1.430(h)(3)–1(a)(3)).
(ii) Significant change in coverage—
(A) Change in coverage from time of
experience study. For purposes of
applying the rules of paragraph
(d)(4)(i)(C) of this section, a significant
change in the individuals covered by a
substitute mortality table occurs if there
is an increase or decrease in the number
of individuals of at least 20 percent
compared to the average number of
individuals in that population over the
years covered by the experience study
on which the substitute mortality tables
are based. However, a change in
coverage is not treated as significant if
the plan’s actuary certifies in writing to
the satisfaction of the Commissioner
that the substitute mortality tables used
for the plan population continue to be
accurately predictive of future mortality
of that population (taking into account
the effect of the change in the
population).
(B) Change in coverage from time of
certification. For purposes of applying
the rules of paragraph (d)(4)(i)(C) of this
section, a significant change in the
individuals covered by a substitute
mortality table occurs if there is an
increase or decrease in the number of
individuals covered by a substitute
mortality table of at least 20 percent
compared to the number of individuals
in a plan year for which a certification
described in paragraph (d)(4)(ii)(A) of
this section was made on account of a
prior change in coverage. However, a
change in coverage is not treated as
significant if the plan’s actuary certifies
in writing to the satisfaction of the
Commissioner that the substitute
mortality tables used by the plan with
VerDate Aug<31>2005
15:05 Jul 30, 2008
Jkt 214001
respect to the covered population
continue to be accurately predictive of
future mortality of that population
(taking into account the effect of the
change in the plan population).
(e) Effective/Applicability date. This
section applies for plan years beginning
on or after January 1, 2009.
I Par. 4. Section 1.431(c)(6)–1 is added
to read as follows:
§ 1.431(c)(6)–1 Mortality tables used to
determine current liability.
(a) Mortality tables used to determine
current liability. The mortality
assumptions that apply to a defined
benefit plan for the plan year pursuant
to section 430(h)(3)(A) and
§ 1.430(h)(3)–1(a)(2) are used to
determine a multiemployer plan’s
current liability for purposes of
applying the rules of section 431(c)(6).
A multiemployer plan is permitted to
apply either the static mortality tables
used pursuant to § 1.430(h)(3)–1(a)(3) or
generational mortality tables used
pursuant to § 1.430(h)(3)–1(a)(4) for this
purpose. However, for this purpose, a
multiemployer plan is not permitted to
use substitute mortality tables under
§ 1.430(h)(3)–2.
(b) Effective/applicability date. This
section applies for plan years beginning
on or after January 1, 2008.
Linda E. Stiff,
Deputy Commissioner for Services and
Enforcement.
Approved: July 20, 2008.
Eric Solomon,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. E8–17492 Filed 7–30–08; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 20
[TD 9414]
RIN 1545–BE52
Grantor Retained Interest Trusts—
Application of Sections 2036 and 2039;
Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendment.
AGENCY:
SUMMARY: This document contains a
correction to final regulations (TD 9414)
that were published in the Federal
Register on Monday, July 14, 2008 (73
FR 40173). The final regulations provide
guidance on the portion of property
transferred to a trust or otherwise, that
PO 00000
Frm 00034
Fmt 4700
Sfmt 4700
is properly includible in a grantor’s
gross estate under Internal Revenue
Code (Code) sections 2036 and 2039 if
the grantor has retained the use of the
property or the right to an annuity,
unitrust, or other payment from such
property for life, for any period not
ascertainable without reference to the
grantor’s death, or for a period that does
not in fact end before the grantor’s
death.
The correction is effective on
July 31, 2008 and applicable to the
estates of decedents dying after August
16, 1954.
DATES:
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9414) that is
the subject of this correction are under
sections 2036 and 2039 of the Code.
List of Subjects for 26 CFR Part 20
Estate taxes, Reporting and
recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 20 is
corrected by making the following
correcting amendment:
I
PART 20—ESTATE TAX; ESTATES OF
DECEDENTS DYING AFTER AUGUST
16, 1954
Paragraph 1. The authority citation
for part 20 continues to read in part as
follows:
I
Authority: 26 U.S.C. 7805 * * *
I Par. 2. Section 20.2036–1 is amended
by adding paragraph (a)(3)(ii) to read as
follows:
§ 20.2036–1
estate.
Transfers with retained life
(a) * * *
(3) * * *
(ii) The right, either alone or in
conjunction with any other person or
persons, to designate the person or
persons who shall possess or enjoy the
transferred property or its income
(except that, if the transfer was made
before June 7, 1932, the right to
designate must be retained by or
reserved to the decedent alone).
*
*
*
*
*
Cynthia E. Grigsby,
Senior Federal Register Liaison Officer,
Publications and Regulations Branch, Legal
Processing Division, Associate Chief Counsel
(Procedure and Administration).
[FR Doc. E8–17500 Filed 7–30–08; 8:45 am]
BILLING CODE 4830–01–P
E:\FR\FM\31JYR1.SGM
31JYR1
]]>Agencies
[Federal Register Volume 73, Number 148 (Thursday, July 31, 2008)]
[Rules and Regulations]
[Page 44648]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-17500]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 20
[TD 9414]
RIN 1545-BE52
Grantor Retained Interest Trusts--Application of Sections 2036
and 2039; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendment.
-----------------------------------------------------------------------
SUMMARY: This document contains a correction to final regulations (TD
9414) that were published in the Federal Register on Monday, July 14,
2008 (73 FR 40173). The final regulations provide guidance on the
portion of property transferred to a trust or otherwise, that is
properly includible in a grantor's gross estate under Internal Revenue
Code (Code) sections 2036 and 2039 if the grantor has retained the use
of the property or the right to an annuity, unitrust, or other payment
from such property for life, for any period not ascertainable without
reference to the grantor's death, or for a period that does not in fact
end before the grantor's death.
DATES: The correction is effective on July 31, 2008 and applicable to
the estates of decedents dying after August 16, 1954.
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9414) that is the subject of this
correction are under sections 2036 and 2039 of the Code.
List of Subjects for 26 CFR Part 20
Estate taxes, Reporting and recordkeeping requirements.
Correction of Publication
0
Accordingly, 26 CFR part 20 is corrected by making the following
correcting amendment:
PART 20--ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16,
1954
0
Paragraph 1. The authority citation for part 20 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 20.2036-1 is amended by adding paragraph (a)(3)(ii) to
read as follows:
Sec. 20.2036-1 Transfers with retained life estate.
(a) * * *
(3) * * *
(ii) The right, either alone or in conjunction with any other
person or persons, to designate the person or persons who shall possess
or enjoy the transferred property or its income (except that, if the
transfer was made before June 7, 1932, the right to designate must be
retained by or reserved to the decedent alone).
* * * * *
Cynthia E. Grigsby,
Senior Federal Register Liaison Officer, Publications and Regulations
Branch, Legal Processing Division, Associate Chief Counsel (Procedure
and Administration).
[FR Doc. E8-17500 Filed 7-30-08; 8:45 am]
BILLING CODE 4830-01-P
