Avoid Powers to Revoke, Alter, Amend, or Terminate
6 Pages Posted: 24 Jul 2013
Date Written: October 2012
This article provides an introduction to section 2038, which provides that a decedent’s estate includes the value of all interests in property transferred by the decedent over which the decedent has a power to revoke, alter, amend, or terminate beneficial interests. After a discussion of the statutory language, this article provides an overview of the problems that can arise under section 2038, with special attention to cases in which powers held by a trustee will be imputed to a trust’s grantor. There is a short quiz at the end of the article that both experienced and beginning practitioners can use to gauge their understanding of section 2038.
Keywords: trusts, incomplete gifts, gifts, revoke, alter, amend, terminate, 2038, estate tax, gross estate
JEL Classification: K34, K19
Suggested Citation: Suggested Citation