Estate of Clayton v. Commissioner
United States Tax Court
The will of decedent (D) gave his wife (W) an income interest in trust B and provided that, if D's executor did not elect to treat the property in trust B as "qualified terminable interest property" within the meaning of I.R.C. sec. 2056(b)(7), that property would pass to trust A. W's interest in trust A did not satisfy the requirements of sec. 2056(b)(7). Held: D's estate is not entitled to an estate tax marital deduction for W's interest in the trust B property with…
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The will of decedent (D) gave his wife (W) an income interest in trust B and provided that, if D's executor did not elect to treat the property in trust B as "qualified terminable interest property" within the meaning of I.R.C. sec. 2056(b)(7), that property would pass to trust A. W's interest in trust A did not satisfy the requirements of sec. 2056(b)(7). Held: D's estate is not entitled to an estate tax marital deduction for W's interest in the trust B property with respect to which an election was made.
1Opinion of the Court
COHEN, Judge:
Respondent determined a deficiency of $531,534.97 in petitioner’s Federal estate tax. The sole issue for decision is whether the surviving spouse’s income interest in property constitutes “qualified terminable interest property” within the meaning of section 2056(b)(7) where the income interest is subject to the executor’s election. Unless otherwise indicated, all section references are to the Internal Revenue Code as amended and in effect as of the date of decedent’s death.
FINDINGS OF FACT
Some of the facts have been stipulated, and the facts set forth in the stipulation are…
2Cases cited15 opinions
- Jackson v. United StatesSupreme Court of the United States · 1964
- Estate of Wallace v. CommissionerUnited States Tax Court · 1990
- Estate of Kyle v. CommissionerUnited States Tax Court · 1990
- Estate of Nicholson v. CommissionerUnited States Tax Court · 1990
- Estate of Doherty v. Comm'rUnited States Tax Court · 1990
10 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Estate of Clayton v. CommissionerCourt of Appeals for the Fifth Circuit · 1992
- Estate of Willard E. Robertson, Deceased, Walter G. Miller, Successor-Executor v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1994
- Estate of Cavenaugh v. CommissionerUnited States Tax Court · 1993
- Estate of Robertson v. CommissionerUnited States Tax Court · 1992
- Estate of Clayton v. C.I.R.Court of Appeals for the First Circuit · 1992
15 more not listed; retrieve them via the Exa API.