Transfers to Relatives for Services Received 510-05-80-35

(Revised 2/04 ML #2900)

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(N.D.A.C. Section 75-02-02.1-33.1)

 

Where any income or asset is transferred to a relative for services or assistance furnished by the relative, the services or assistance furnished may not be treated as consideration for the transferred income or asset unless:

 

1. The transfer is made pursuant to a valid written contract entered into prior to rendering the services;
2. The contract was executed by the individual or the individual's fiduciary who is not a provider of services or assistance under the contract;
3. Compensation is consistent with rates paid in the open market for the services actually provided; and
4. The parties' course of dealing included paying compensation upon rendering services or assistance, or within 30 days thereafter.