Part III. Administrative, Procedural, and Miscellaneous

Guidance on Private Trust Companies

Notice 2008–63

TEXT

I. Overview and Purpose

This notice sets forth the contents of a proposed revenue ruling concerning the income, estate, gift, and generation-skipping transfer tax consequences in situations in which family members create a private trust company to serve as the trustee of trusts having family members as grantors and beneficiaries.

This notice solicits public comments regarding the proposed revenue ruling. The IRS and the Treasury Department anticipate issuing a final revenue ruling after the comments have been considered. The IRS and the Treasury Department intend that the revenue ruling, once issued, will confirm certain tax consequences of the use of a private trust company that are not more restrictive than the consequences that could have been achieved by a taxpayer directly, but without permitting a taxpayer to achieve tax consequences through the use of a private trust company that could not have been achieved had the taxpayer acted directly. Comments are specifically requested as to whether or not the draft revenue ruling will achieve that intended result.

II. Proposed Revenue Ruling