My attorney or tax advisor has never heard of a Private Annuity Trust or has heard of it and doesn think it is legal. How can they be assured that it is a legitimate Estate Planning strategy?
A. Many attorneys and tax advisors have not heard of Private Annuity Trusts, or perhaps they may have heard of them but choose not to make them part of their everyday practice, primarily due to their relative complexities and niche market use. The only true way for an attorney or tax advisor to understand the legality of a Private Annuity Trust is for him/her to become familiar with the IRS Revenue Rulings. These rulings include IRS Revenue Rulings 55-119 and 69-74, Revenue Ruling 80-80, the IRS’ GCM39503 (5/19/1986) and Treasury Decision TD-8754 (1998), also the Ninth Circuit U.S. Court of Appeals decision “LaFargue v. Commissioner, 689 F.2d 845 (1982)”. These court decisions and rulings are posted on the “Tax Codes & Court Rulings” page of the website and are also available by mail upon request.
