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Self-Dealing Pitfalls and Strategic Solutions—Part II: Problems Related to Estate Administration, Facility Use, Sale/Provision of Goods, Debt Assumption, and Controlled Entities

Author: Megan C. Sanders.

Source: Volume 14, Number 06, September/October 2015 , pp.3-8(6)

Abstract:

Part I of this two-part series explained the application of IRC §4941 to acts of self-dealing between a private foundation and a disqualified person (DP) both in general and with respect to compensation and shared-cost arrangements. Part II looks at the self-dealing issues that arise in the context of estate administration, the use of foundation facilities, the sale or provision of goods, the assumption of debt, and the use of controlled entities. Includes six illustrative case studies, with citations to the Internal Revenue Code and regulations, and to relevant revenue and private letter rulings.

Keywords: Prohibition on self-dealing; IRC §4941; estate administration; foundation’s expectancy interest in estate; self-dealing exception for estates; disqualified person

Affiliations: 1: Bourland, Wall & Wenzel, P.C..