Gerald W. Ray, Trustee and Personal Representative of the Estate of David L. Ray v. United States

SCHROEDER, Circuit Judge.

The estate of David Ray brought this action in the district court to recover the estate tax and interest paid on a one-half interest in a trust established pursuant to a divorce settlement. The district court denied the refund. It held that the one-half interest was properly included in the estate pursuant to 26 U.S.C. § 2036(a) because the decedent retained a life estate in the property transferred to the trust, and the estate failed to prove that the transfer was a “bona fide sale for an adequate and full consideration in money or money’s worth.” 26 U.S.C. §…