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Gifts or Bequests of Business Holdings

If there is a change in a foundation's business holdings (other than through purchase by the foundation or by disqualified persons) such as through gift or bequest, and the additional holdings result in the foundation having excess business holdings, the foundation has five years to reduce these holdings or those of its disqualified persons to permissible levels. The excess business holdings (or the increase in excess business holdings) resulting from the gift or bequest are treated as being held by a disqualified person, rather than by the foundation itself, during the five-year period beginning on the date the foundation obtains the holdings.


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Page Last Reviewed or Updated: 13-May-2014