Twenty-one-year deemed disposition rule
1 definition found for this term.
Definitions are presented in the order source books were published (most recent first).
Income Tax Law, 2/e$75.00 – $120.00
A rule requiring that trust assets be treated for tax purposes as if they were disposed of every twenty-one years. This measure accompanied the introduction of capital gains taxation in 1972 to prevent trusts from being used to avoid the taxation of capital gains on death.