In 2000, Irv creates a revocable trust, income payable to his children for life, remainder to his grandchildren. In 2007, Irv relinquishes the power to revoke the trust. If Irv dies in 2011, the trust is not included in his gross estate.

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By relinquishing the power to revoke the trust in 2007, Irv gave up ownership and control of the assets in the trust. As a result, the assets in the trust are no longer considered part of his gross estate for estate tax purposes upon his death in 2011. Additionally, because the trust was structured with income payable to his children for life and remainder to his grandchildren, the assets would pass to his grandchildren outside of his estate through the terms of the trust.

In 2000, Irv Creates a Revocable Trust, Income Payable to His