Todd v. Commissioner
United States Tax Court
Decedent's will established a marital and a residuary trust. The provision for the distribution of income from the marital trust required the trustees to pay at least annually "so much of the net income of this trust to my wife * * * as in their conclusive discretion should be so expended to accomplish the purpose of this trust."
Read the full summary
Decedent's will established a marital and a residuary trust. The provision for the distribution of income from the marital trust required the trustees to pay at least annually "so much of the net income of this trust to my wife * * * as in their conclusive discretion should be so expended to accomplish the purpose of this trust." During their administration of the estate, the independent coexecutors borrowed $ 300,000 to pay Federal estate and State inheritance taxes in order to avoid having to sell nonliquid assets at "forced sale" prices. The interest incurred on this borrowing was deducted…
1Opinion of the Court
DawsoN. Judge:
Respondent determined a deficiency of $252,018.28 in the Federal estate tax of the Estate of James S. Todd, Jr. The primary question to be decided is whether the estate is entitled to a marital deduction (amounting to $513,309.64) under section 2056, I.R.C. of 1954.1 A second question is whether the estate incurred an interest expense which is deductible under section 2053(a) (2). Other questions involving additional deductions for reasonable attorneys’ fees and executors’ commissions have been resolved by the parties and can be given effect in the Rule 50 computations.
JINDINGS…
2Cases cited10 opinions
- United States v. StapfSupreme Court of the United States · 1964
- State v. RubionTexas Supreme Court · 1957
- Huntington v. CommissionerUnited States Board of Tax Appeals · 1937
- Kelly v. WomackTexas Supreme Court · 1954
- T. S. Ballance, Administrator De Bonis Non With the Will Annexed of the Estate of Samuel D. Jarvis, Deceased v. United StatesCourt of Appeals for the Seventh Circuit · 1965
5 more not listed; retrieve them via the Exa API.
3Cited by51 opinions
- Estate of Smith v. CommissionerUnited States Tax Court · 1972
- Estate of Bahr v. CommissionerUnited States Tax Court · 1977
- Estate of Mary F. Colton Park, Detroit Bank and Trust Company, Administrator With Will Annexed v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1973
- Estate of Bailly v. CommissionerUnited States Tax Court · 1983
- Estate of Black v. Comm'rUnited States Tax Court · 2009
46 more not listed; retrieve them via the Exa API.