Estate of Clack v. Commissioner
United States Tax Court
Decedent's will gave his surviving spouse an income interest in certain marital trust property but provided that if decedent's coexecutors did not elect to treat the property as "qualified terminable interest property" (QTIP) within the meaning of sec. 2056(b)(7), I.R.C., such property would instead be administered under the terms of a nonmarital family trust. Held: The marital trust property is QTIP within the meaning of sec. 2056(b)(7), I.R.C.
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Decedent's will gave his surviving spouse an income interest in certain marital trust property but provided that if decedent's coexecutors did not elect to treat the property as "qualified terminable interest property" (QTIP) within the meaning of sec. 2056(b)(7), I.R.C., such property would instead be administered under the terms of a nonmarital family trust. Held: The marital trust property is QTIP within the meaning of sec. 2056(b)(7), I.R.C. This Court's opinions in Estate of Robertson v. Commissioner, 98 T.C. 678 (1992), revd. 15 F.3d 779 (8th Cir. 1994); Estate of Clayton v.…
1DissentParker, J.
I think this Court was correct in its interpretation of section 2056(b)(7) and correctly held that the surviving spouse does not have a “qualifying income interest for life” where passage of such income interest in the property. to the surviving spouse is contingent upon the executor’s making the QTIP election as to such property and therefore subject to the executor’s power to appoint the property to someone other than the surviving spouse. Thus such property is not “qualified terminable interest property” even though the executor ultimately makes the QTIP election. Accordingly, I think this…
2Cases cited24 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Mecom v. Fitzsimmons Drilling Co.Supreme Court of the United States · 1931
- Greenough v. Tax Assessors of NewportSupreme Court of the United States · 1947
- Matheson v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1931
- Estate of Clayton v. CommissionerCourt of Appeals for the Fifth Circuit · 1992
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