2103001 Informal Interpretation

1
Sheinberg, Samuel I.
From:
Sent: 	Wednesday, March 3, 2021 4:07 PM
To: 	Walsh, Kathryn E.; Berg, Karen E.; Sheinberg, Samuel I.; Six, Anne; Musick, Vesselina
Subject: 	FW: 802.71 clarification
From: Whitehead, Nora
Sent: Wednesday, March 3, 2021 4:06:58 PM (UTC-05:00) Eastern Time (US & Canada)
To:
Cc: HSRHelp
Subject: RE: 802.71 clarification
802.71 potentially covers any transfer by a settlor to an irrevocable trust (irrespective of who settled the trust). The
identity of the recipient does not matter, so long as the other regulatory requirements of the exemption are met.
From:
Sent: Tuesday, March 2, 2021 12:35:12 PM (UTC-05:00) Eastern Time (US & Canada)
To:
Subject: 802.71 clarification
Dear PNO Staff:
We’d like to make sure we understand the application of 802.71, exempting acquisitions resulting from a gift or
transfer by a settlor to an irrevocable trust (as well as intestate succession and testamentary disposition), so just
wanted to confirm two things:
Does 802.71 cover any transfer by a settlor to an irrevocable trust (irrespective of who settled the trust), or does
it only apply to transfers to irrevocable trusts settled by the same trustee? We understand no “control”
analysis of the trust needs to be done (e.g., looking at rights to remove and replace trustees) provided the
recipient trust is irrevocable, but please let me know if that understanding is not correct.
Is a gift to any recipient covered by 802.71? We’ve seen several interpretations confirming 802.71 applies to gifts
to tax-exempt/non-profit entities, but wanted to confirm it also applies to gifts to natural persons/family
members (or their trusts).
Thanks in advance for your time and please don’t hesitate to let me know if you need more information or if helpful
to discuss.