Estate of Herbert R. Herrmann, Deceased, Edward I. Herrmann and Lawrence A. Herrmann, Co-Executors v. Commissioner of Internal Revenue

CALABRESI, Circuit Judge:

In a prenuptial agreement, Herbert Herrmann agreed to give his fiancée a life interest in his apartment upon his death, provided that they were still married when he died. In return, the fiancée gave up her rights to any of her future husband’s property upon his death or their divorce. They married, and several years later the husband died. The question is whether the widow’s life interest in his apartment is a claim supported by “adequate and full consideration in money or money’s worth.” I.R.C. § 2053(e)(1)(A). If so, then it is deductible from the husband’s taxable…