Cottrell v. Commissioner
United States Tax Court
Petitioner held a 50-percent remainder interest in a testamentary trust created in 1937 by the will of her father. In 1970, when the life tenant of the trust expired, petitioner executed a disclaimer of her remainder interest which was unequivocal and effective under New Jersey law. Held, the disclaimer was not made within a reasonable time as required by sec. 25.2511-1(c), Gift Tax Regs. Keinath v. Commissioner, 480 F.2d 57 (8th Cir. 1973), distinguished.
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Petitioner held a 50-percent remainder interest in a testamentary trust created in 1937 by the will of her father. In 1970, when the life tenant of the trust expired, petitioner executed a disclaimer of her remainder interest which was unequivocal and effective under New Jersey law. Held, the disclaimer was not made within a reasonable time as required by sec. 25.2511-1(c), Gift Tax Regs. Keinath v. Commissioner, 480 F.2d 57 (8th Cir. 1973), distinguished. Held, further, petitioner is not liable for any additions to tax under sec. 6653(a), I.R.C. 1954.
1Opinion of the Court
Wiles, Judge:
Respondent determined a $4,639,402.50 deficiency and a $231,970.13 addition to tax under section 6653(a)1 in petitioner’s 1970 Federal gift tax. The two issues are whether petitioner made a taxable gift under section 2511 when she executed a disclaimer of her remainder interest in her father’s testamentary trust and whether she is subject to an addition to tax under section 6653(a) for failing to disclose the disclaimer on her 1970 gift tax return.
FINDINGS OF FACT
All the facts have been stipulated and are so found.
Lois P. Cottrell (hereinafter petitioner) resided in Stonington,…
2Cases cited8 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Hill v. CommissionerUnited States Tax Court · 1974
- Brown v. CommissionerUnited States Tax Court · 1967
- Keinath v. CommissionerCourt of Appeals for the Eighth Circuit · 1973
- Keinath v. CommissionerUnited States Tax Court · 1972
3 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Major v. CommissionerUnited States Tax Court · 1981
- Metzger Trust v. CommissionerUnited States Tax Court · 1981
- Lois P. Cottrell v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1980
- Hesselink v. CommissionerUnited States Tax Court · 1991
- Poinier v. CommissionerUnited States Tax Court · 1986
11 more not listed; retrieve them via the Exa API.