Shaw v. Commissioner (In re Estate of Neumann)
United States Tax Court
Decedent, a nonresident alien, died in 1990. She bequeathed U.S. situs property outright to her grandchildren. In 1986, bequests of this type, i.e., "direct skips", were first subjected to the generation-skipping transfer (GST) tax provisions of secs. 2601 through 2663, I.R.C. At the time of decedent's death, regulations dealing with "direct skips" had not been issued. Held, the bequests are subject to the GST tax.
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Decedent, a nonresident alien, died in 1990. She bequeathed U.S. situs property outright to her grandchildren. In 1986, bequests of this type, i.e., "direct skips", were first subjected to the generation-skipping transfer (GST) tax provisions of secs. 2601 through 2663, I.R.C. At the time of decedent's death, regulations dealing with "direct skips" had not been issued. Held, the bequests are subject to the GST tax. The issuance of regulations in respect of "direct skips" by nonresident aliens provided for in sec. 2663(2), I.R.C., is not a condition precedent to the imposition of the GST tax…
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined a deficiency in petitioner’s Federal estate tax and generation-skipping transfer (gst) tax in the amount of $2,002,102.05. After concessions, the sole issue remaining for decision is whether the GST tax, under sections 2601 through 2663,1 applies to the transfer of U.S. situs property to decedent’s grandchildren, where, at the time of death, decedent was a nonresident alien and regulations had not yet been promulgated under section 2663(2).
All the facts have been stipulated and are so found. The stipulation of facts and the exhibits attached…
2Cases cited8 opinions
- First Chicago Corporation v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1988
- Occidental Petroleum Corp. v. CommissionerUnited States Tax Court · 1984
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- Alexander v. Comm'rUnited States Tax Court · 1990
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