Estate of Sawade v. Commissioner

WOLLMAN, Circuit Judge.

The Estate of Myrtle M. Sawade (Estate) appeals from a Tax Court judgment sustaining the Commissioner’s determination of a deficiency in federal estate tax. We affirm.

I

On May 17, 1977, Myrtle M. Sawade, as grantor, created a revocable living trust, appointing Louise C. Hornstein, her sister, successor trustee. Under the terms of the trust the successor trustee had the unqualified power to pay the debts and expenses of the grantor’s estate.

Sawade died on October 10,1978. At the time of her death the trust owned 40,114 shares of stock in the Baldor Electric Company,…