§645 Certain Revocable Trusts Treated as Part of Estate

Summary

If both the estate’s executor (if any) and the trustee agree, a revocable trust can be treated and taxed as part of the decedent’s estate instead of as a separate trust. That rule applies to every estate tax year that ends after the person’s death and before the “applicable date.” A “qualified revocable trust” is one that was treated as owned by the decedent because the grantor had certain powers. The “applicable date” is either 2 years after death if no chapter 11 tax return is needed, or 6 months after the final determination of any chapter 11 tax liability. The election must be made by the deadline for the estate’s first tax return (including extensions) and cannot be changed once made.