Estate of Carl I. Heim, Deceased, Isabelle J. Heim v. Commissioner of Internal Revenue

EDWARD C. REED, Jr., Chief District Judge:

The estate appeals the Tax Court’s 1 determination that a bequest to Isabelle J. Heim, surviving spouse of the deceased, was a nondeductible terminable interest under section 2056 of the Internal Revenue Code (26 U.S.C.); that section 1036 of the California Probate Code did not apply to save the bequest from the terminable interest rules; and that the estate therefore was not entitled to a marital deduction. We affirm the decision of the Tax Court.

I. FACTS

On November 12, 1981, Carl I. Heim (hereinafter “Mr. Heim” or “decedent”) died testate, a…