Estate of Reid v. Commissioner
United States Tax Court
Decedent created a revocable, inter vivos trust and authorized the trustees, "in their discretion," to pay all Illinois inheritance taxes arising by reason of his death out of nonmarital property. After decedent's death the trustees elected to pay all inheritance taxes, including the tax on property passing to the surviving spouse, out of nonmarital property.
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Decedent created a revocable, inter vivos trust and authorized the trustees, "in their discretion," to pay all Illinois inheritance taxes arising by reason of his death out of nonmarital property. After decedent's death the trustees elected to pay all inheritance taxes, including the tax on property passing to the surviving spouse, out of nonmarital property. Held, under sec. 2056(b)(4)(A), I.R.C., 1954 as amended, P's marital deduction must be reduced by the amount of inheritance tax attributable to the marital property. At death decedent owed Federal and State income taxes on income earned…
1Opinion of the Court
OPINION
COHEN, Judge:
Respondent determined a deficiency of $125,361.44 in the Federal estate tax of petitioner. After concessions, the issues for decision are whether the estate tax marital deduction should be reduced by (1) Illinois inheritance tax on property passing to the surviving spouse, but payable by trustees, “in their discretion,” out of nonmarital property, and (2) Federal and State income taxes, owed but unpaid by decedent at death, on undistributed trust income which passed to his surviving spouse.
All of the facts have been stipulated. The stipulation of facts and the exhibits…
2Cases cited24 opinions
- Riggs v. Del DragoSupreme Court of the United States · 1942
- United States v. StapfSupreme Court of the United States · 1964
- Jackson v. United StatesSupreme Court of the United States · 1964
- In re Estate of GravesIllinois Supreme Court · 1909
- The People v. McCormickIllinois Supreme Court · 1927
19 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Estate of Fine v. CommissionerUnited States Tax Court · 1988
- Estate of Warren v. CommissionerUnited States Tax Court · 1989
- Estate of Swallen v. CommissionerUnited States Tax Court · 1993
- Estate of William L. Reno, Jr. Barbara G. Reno v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1991
- Estate of Proctor v. CommissionerUnited States Tax Court · 1994
8 more not listed; retrieve them via the Exa API.