Louisiana Revised Statutes 9:2159 – When the power to adjust is denied
Terms Used In Louisiana Revised Statutes 9:2159
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- Marital deduction: The deduction(s) that can be taken in the determination of gift and estate tax liabilities because of the existence of a marriage or marital relationship.
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
- Trustee: A person or institution holding and administering property in trust.
A trustee shall not make an adjustment under La. Rev. Stat. 9:2158:
(1) If the existence or exercise of the power to adjust would cause ineligibility for the estate-tax or gift-tax marital deduction or charitable deduction.
(2) That diminishes the value for gift-tax purposes of the income interest in a trust to which a person transfers property with intent to qualify for a gift tax exclusion;
(3) If possessing or exercising the power to make an adjustment causes an individual to be treated as the owner of all or part of the trust for income tax purposes, and the individual would not be treated as the owner if the trustee did not possess the power to make an adjustment; or
(4) If the terms of the trust instrument clearly deny the trustee the power to make adjustments.
Acts 2001, No. 520, §4; Acts 2003, No. 480, §1.