Estate of La Meres v. Comm'r
United States Tax Court
Decedent devised the residue of his estate to a revocable trust, which he had established prior to death, for the benefit of both charitable and noncharitable beneficiaries. The bequest did not qualify for the estate tax deduction for bequests to charitable entities because it violated the prohibition against bequests of split interests in sec. 2055(e)(2), I.R.C.
Read the full summary
Decedent devised the residue of his estate to a revocable trust, which he had established prior to death, for the benefit of both charitable and noncharitable beneficiaries. The bequest did not qualify for the estate tax deduction for bequests to charitable entities because it violated the prohibition against bequests of split interests in sec. 2055(e)(2), I.R.C. After decedent's death, the trustees modified the dispositive provisions of the trust, effectively purging it of its split interest. The modification was not a "qualified reformation" under sec. 2055(e)(3), I.R.C.Held, where the only…
1Opinion of the Court
RUWE, Judge:
Respondent determined a deficiency in petitioner's Federal estate tax in the amount of $11,786,621, and additions to tax under section 6651(a)(1)1 in the amount of $3,718,725, and under section 6651(a)(2) in the amount of $618,326.
The issues for decision are: (1) Whether the split interest charitable provisions of the Eugene E. La Meres Revocable Trust, which were modified by the post-death creation of the La Meres Beta Trust, qualify for an estate tax charitable deduction; (2) assuming that the estate tax charitable deduction is allowable, whether a subsequent adjustment in the…
2Cases cited62 opinions
- Freytag v. CommissionerSupreme Court of the United States · 1991
- United States v. BoyleSupreme Court of the United States · 1985
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
- Logan Lumber Company v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1966
- Crocker v. CommissionerUnited States Tax Court · 1989
57 more not listed; retrieve them via the Exa API.
3Cited by32 opinions
- Niedringhaus v. CommissionerUnited States Tax Court · 1992
- Downing v. Comm'rUnited States Tax Court · 2002
- Estate of Young v. CommissionerUnited States Tax Court · 1998
- Estate of Bennett v. CommissionerUnited States Tax Court · 1993
- Peter Knappe v. United StatesCourt of Appeals for the Ninth Circuit · 2013
27 more not listed; retrieve them via the Exa API.