Interesting recent ruling from the Internal Revenue Service, Letter Ruling 201825003:
An art collector entered into a deed of transfer with two museums in a foreign country to pass title to the artworks at her death. During her lifetime, the owner was entitled to keep possession of the artwork, subject to a favorable ruling from the IRS that the transaction is not a completed gift.
The art collector asked the IRS to rule that the deed of transfer not be treated as a completed gift for gift tax purposes. The IRS noted that, under the deed of transfer, the donor has retained no power to change the disposition of the collection to the museums. Her grant to the museums of the "legal title, naked ownership and remainder interest" in the collection would be a completed gift for gift tax purposes, but for the condition precedent of the receipt of a favorable IRS ruling.
Sounds complicated, huh? Estate and gift tax matters usually are. If you have questions about how the tax laws affect your estate planning, give us a call at 253.858.5434 to see how we can be of service. We proudly represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype or FaceTime.