Related Taxpayer

[Snaggletooth]

Martin creates an irrevocable trust as part of his end-of-life planning, and transfers assets into the trust at his basis.

After the trust is established, he has irrevocably given up control of the assets.

Question: Is the irrevocable trust a "related" party??

1. Is it a related party if the controlling party is a family member?
2. Is it a related party if the controlling party is NOT a family member (such as an attorney)?

[New York Enrolled Agent]

Related parties are usually determined by IRC 267

[Lion]

And, read the trust document.

[Snaggletooth]

Related parties are usually determined by IRC 267

Yes thank you. According to IRC 267 the irrevocable trust would be a related party if controlled by a related party. The referenced attorney would most likely not.