Estate v. Woody v. Commissioner
United States Tax Court
Held, decedent's daughter's claim against his estate was based upon "adequate and full consideration in money or money's worth" ( sec. 2053, I.R.C. 1954), and was deductible from the gross estate; it was not a device for making a testamentary disposition.
1Opinion of the Court
OPINION.
Raum, Judge:
To be deductible for estate tax purposes under section 2053 of the 1954 Code,2 a claim against an estate must be “contracted bona fide and for an adequate and full consideration in money or money’s worth.”3 The only matter in controversy in the instant case is whether the $14,000 claim which Rhoma held against the decedent’s estate was in fact contracted for such statutory consideration. We think that it was.
Since this case involves what was essentially an intrafamily transaction, the alleged obligation which resulted therefrom bears special scrutiny. It has been said that…
2Cases cited3 opinions
- Taft v. CommissionerSupreme Court of the United States · 1938
- Goetchius v. CommissionerUnited States Tax Court · 1951
- Carney v. BenzCourt of Appeals for the First Circuit · 1937
3Cited by18 opinions
- Estate of Frothingham v. CommissionerUnited States Tax Court · 1973
- Tiffany v. CommissionerUnited States Tax Court · 1967
- Estate of Reilly v. CommissionerUnited States Tax Court · 1981
- Estate of Labombarde v. CommissionerUnited States Tax Court · 1972
- Estate of Morse v. CommissionerUnited States Tax Court · 1977
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