Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 67-24

1967-1 C.B. 75

Tax Treaties

Sec. 318

Full Text

Rev. Rul. 67-24

All the outstanding stock of a corporation was owned by A and the estate of D until the corporation redeemed all the shares of its stock owned by the estate. The will of D provides that after the payment of certain specific legacies the residue of his estate is to be placed in trust for the benefit of A . The trust residue will not be transferred to the trustee until administration of the estate is concluded.

Held , the residuary testamentary trust is a trust under section 318(a)(3)(B) of the Internal Revenue Code of 1954, even though the residue will not be transferred to the trustee until administration of the estate is concluded. The trust will be considered to be a beneficiary of the estate within the meaning of section 318(a)(3)(A) of the Code. Thus, the corporate stock owned by A is attributed to the trust under section 318(a)(3)(B) of the Code, and is in turn attributed to the estate under section 318(a)(3)(A) of the Code.