Estate of Ellingson v. Commissioner

GOODWIN, Circuit Judge:

Estate of Ellingson appeals a Tax Court decision affirming the Commissioner of Internal Revenue’s denial of a QTIP marital tax deduction. At his death, George Ellingson had bequeathed certain property in trust to his wife Lavedna. The Estate claimed a QTIP deduction on this property but the Commissioner determined that the deduction was inapplicable. The case turns on the language of the trust. We reverse.

*960While he was alive, George D. Ellingson, together with his wife Lavedna, established a comprehensive estate plan through an inter vivos trust (the “Trust”). George and…