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IN HB1083
Bill
Status
1/5/2016
Primary Sponsor
Thomas Washburne
Click for details
AI Summary
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Adds IC 30-4-2.1-18 to establish rules for interpreting qualified terminable interest property trusts, effective July 1, 2016.
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Applies to trusts created after June 30, 2016 and any rights or interests created after June 30, 2016 in existing trusts.
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Allows a "donor spouse" (one contributing assets to a trust where their spouse is a beneficiary) to not be treated as a settlor under three conditions: irrevocable marital trusts meeting IRC Section 2523(f) or 2523(e) requirements, or irrevocable trusts where the contributor is a beneficiary and their spouse is the settlor.
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Permits trust contributors to avoid being treated as settlors when the trustee may pay taxes on trust income/principal taxable to the contributor, pay life insurance premiums under IRC Section 677(a)(3), or the contributor holds powers described in IRC Section 675.
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Defines "donee spouse" as the beneficiary spouse and "beneficiary" to include those named in the trust or acquiring interests through exercise of a limited or general power of appointment.
Legislative Description
Qualified terminable interest property trusts. Adds rules for the interpretation of qualified terminable interest property trusts. Provides that, under certain circumstances, an individual who contributes assets to a trust and whose spouse is a beneficiary of the trust at the time of the contribution may not be considered to be or treated as a settlor of the trust.
Last Action
First reading: referred to Committee on Judiciary
1/5/2016