Richard H. Black, Deceased, Phyllis M. Black, Personal Representative v. Commissioner of Internal Revenue

CANBY, Circuit Judge:

Petitioner Phyllis Black, personal representative of the estate of Richard Black, appeals from a judgment of the United States Tax Court finding an estate tax deficiency of $39,666.00. The issue is whether the entire value of assets formerly held in joint tenancy by the decedent and his spouse, less the contribution of the surviving spouse, should be included in the gross estate under I.R.C. § 2040, even though the assets were transferred shortly before the decedent’s death into a revocable trust that modified the surviving spouse’s right of survivorship. 1 We hold that…