IRS written determination 201444024

Private letter rulings and published taxpayer determination letters. Native document type is retained separately; a determination letter is not labeled a private letter ruling. These taxpayer-specific releases cannot be used or cited as precedent under 26 USC 6110(k)(3); applicability and current legal force are not independently certified. Keep repeated UILC subjects attached to one actual numbered document.

Internal Revenue Service
Department of the Treasury
Washington, DC 20224
Number: 201444024
Release Date: 10/31/2014
Index Number: 691.00-00
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Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
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Telephone Number:
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Refer Reply To:
CC:PSI:B02
PLR-145441-13
Date:
March 24, 2014
Legend
Estate=-------------------------------
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Decedent=-------------------
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Trust=-----------------------------------------------------------------------------------------
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Charity=--------------------------------------------------------
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Date= ---------------------
New Title=----------------------------------------------------------------------------------------
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Dear ---------------:
This responds to a letter datedOctober 31, 2013, submitted on behalf of Estate
by its authorized representative, requesting a ruling under § 691 of the Internal Revenue
Code.
The information submitted states that Decedentdied on Date. Decedent’s will
provides that all assets included in the residue of Decedent’s estate shall be paid over
to Trust. Trustprovides that after two pecuniary bequests, the remaining undistributed
Trustproperty shall be immediately distributed to Charity. Decedentalso owned an
individual retirement account (IRA) with Trustas the IRA’s primary beneficiary.

PLR-145441-13 2
Estateand Trustintend to assign and transfer the IRA to Charityin accordance
with Article V of the Trust (the Proposed Transfer). A ruling is requested under § 691
that the Proposed Transfer will not be a transfer within the meaning of § 691(a)(2).
Section 691(a)(1) provides that the amount of all items of gross income in
respect of a decedent (IRD) which are not properly includible in respect of the taxable
period in which falls the date of the decedent’s death or a prior period (including the
amount of all items of gross income in respect of a prior decedent, if the right to receive
such amount was acquired by reason of the death of the prior decedent or by bequest,
devise, or inheritance from theprior decedent) shall be included in the gross income, for
the taxable year when received, of: (A) the estate of the decedent, if the right to receive
the amount is acquired by the decedent’s estate from the decedent; (B) the person who,
by reason of the death of the decedent, acquires the right to receive the amount, if the
right to receive the amount is not acquired by the decedent’s estate from the decedent;
or (C) the person who acquires from the decedent the right to receive the amount by
bequest, devise, or inheritance, if the amount is received after a distribution by the
decedent’s estate of such right.
Section 691(a)(2) provides that if a right, described in § 691(a)(1), to receive an
amount is transferred by the estate of the decedent or a personwho received such right
by reason of the death of the decedent or by bequest, devise, or inheritance from the
decedent, there shall be included in the gross income of the estate or such person, as
the case may be, for the taxable period in which the transfer occurs, the fair market
value of such right at the time of such transfer plus the amount by which any
consideration for the transfer exceeds such fair market value. For purposes of this
paragraph, the term “transfer” includes sale, exchange, or other disposition, or the
satisfaction of an installment obligation at other than face value, but does not include
transmission at death to the estate of the decedent or a transfer to a person pursuant to
the right of such person to receive such amount by reason of the death of the decedent
or by bequest, devise, or inheritance from the decedent.
Section 1.691(a)-1(b) provides that the term “income in respect of a decedent”
(IRD) refers to those amounts to which a decedent was entitled as gross income, but
whichwere not properly includible in computing the decedent’s taxable income for the
taxable year ending with the date of the decedent’s death or for a previous table year
under the method of accounting employed by the decedent. Section 1.691(a)-1(c)
providesthat the term “income in respect of a decedent” also includes the amount of all
items of gross income in respect of a prior decedent, if (1) the right to receive such
amount was acquired by the decedent by reason of the death of the prior decedent or
by bequest, devise, or inheritance from the prior decedent and if (2) the amount of gross
income in respect of the prior decedent was not properly includible in computing the
decedent’s taxable income for the taxable year ending with the date of his death or for a
previous taxable year.

PLR-145441-13 3
Section 1.691(a)-4(a) provides that in general, the transferor must include in his
gross income for the taxable period in which the transfer occurs the amount of the
consideration, if any, received for the right or the fair market value of the right at the
time of the transfer, whichever is greater.
Section 1.691(a)-4(b) of the Income Tax Regulations provides that, if the estate
of a decedent or any person transmits the right to IRD to another who would be required
by § 691(a)(1) to include such income when received in his gross income, only the
transferee will include such income when received in his gross income. In this situation,
a transfer within the meaning of § 691(a)(2) has not occurred.
Section 1.691(a)-4(b)(2) provides that if a right to IRD is transferred by an estate
to a specific or residuary legatee, only the specific or residuary legatee must include
such income in gross income when received.
Rev. Rul. 92-47, 1992-1 C.B. 198, holds that a distribution to the beneficiary of a
decedent’s IRA that equals the amount of the balance in the IRA at the decedent’s
death, less any nondeductible contributions, is IRD under § 691(a)(1) that is includable
in the gross income of the beneficiary for the tax year the distribution is received.
Rev. Rul. 78-406, 1978-2 C.B. 157, provides, in general, that the direct transfer
of funds from one IRA trustee to another IRA trustee does not result in such funds being
treated as paid or distributed to the participant and such transfer is not a rollover
contribution. The revenue ruling states that this conclusion would apply whether the
bank trustee initiates or the IRA participant directs the transfer of funds.
Rev. Rul. 78-406 is applicable to a trustee to trustee transfer directed bythe
beneficiary of an IRA after the death of the IRA owner as long as the transferee IRA is
set up and maintained in the name of the deceased IRA owner for the benefit of the
beneficiary. In that situation, the transfer does not constitute a payment or distribution
as those terms are used in §408(d).
Based solely on the facts and representations submitted, we conclude that Trust
may retitle the name of the IRA to New Titleand that such change will not constitute a
payment or distribution out of the IRAto Estate, Trust, or Charitywithin the meaning of
§ 408(d), and will otherwise be a non-taxable transfer. Additionally, the Proposed
Transfer will not be a transfer within the meaning of § 691(a)(2). Charitywill include the
amount of IRD of the IRA assigned and transferred to it in its gross income when the
distributions from the IRA are actually received by Charity.
Except as specifically ruled above, we express no opinion concerning the federal
tax consequences of the transaction described above under any other provisions of the
Code.

PLR-145441-13 4
This ruling is directed only to the taxpayer that requested it. Section 6110(k)(3)
provides that it may not be used or cited as precedent.
Pursuant to a power of attorney on file, a copy of this letter is being sent to
Estate’s authorized representative.
Sincerely,
Bradford Poston
Senior Counsel, Branch 2
Office of the Associate Chief Counsel
(Passthroughs & Special Industries)
cc: