Chief Counsel Memorandum Switches IRS Position on Completed Gifts

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Recent IRS gift tax guidance denotes a change in position on what constitutes a completed gift to a trust that IRS should rethink or at least make prospective, practitioners tell BNA. Chief Counsel Memorandum 201208026 says donors made completed gifts of term interests in a trust when they transferred property to a trust benefitting the donors' children, even though the donors retained testamentary limited power over the trust.