Estate of Smith v. Commissioner
United States Tax Court
Decedent created an inter vivos trust comprised of most of his estate, reserving the income to himself for life. Upon his death the trust estate was to be divided into a marital portion and a residual portion.
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Decedent created an inter vivos trust comprised of most of his estate, reserving the income to himself for life. Upon his death the trust estate was to be divided into a marital portion and a residual portion. The marital portion was to be determined by the trustee as directed in an "equalization clause" that was designed to produce the lowest aggregate estate taxes on the estates of decedent and his surviving spouse by use of the appropriate marital deduction for his estate. The surviving spouse was given the income for life from the marital portion and a general power to appoint the marital…
1Opinion of the Court
OPINION
Drennen, Judge:
Respondent determined a deficiency in the estate tax of the Estate of Charles W. Smith in the amount of $646,700.50. This deficiency resulted from a disallowance of $1,330,101.62 of a claimed marital deduction of $1,521,245.86. The propriety of that disallowance is at issue herein.
The sole question for our determination is whether a property interest which passed from the decedent to his surviving spouse pursuant to the terms of a trust instrument which contained a so-called marital deduction “equalization clause” qualified under section 2056,1.R.C. 1954,1 for the…
2Cases cited3 opinions
- Jackson v. United StatesSupreme Court of the United States · 1964
- Northeastern Pennsylvania National Bank & Trust Co. v. United StatesSupreme Court of the United States · 1967
- Bankers Trust Company, as of the Will of Harriet Delta Ellis, Deceased v. United StatesCourt of Appeals for the Second Circuit · 1960
3Cited by11 opinions
- Estate of Clayton v. CommissionerUnited States Tax Court · 1991
- Estate of Robertson v. CommissionerUnited States Tax Court · 1992
- Estate of Charles W. Smith, Deceased. The Northern Trust Company, Trustee v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1977
- Estate of Meeske v. CommissionerUnited States Tax Court · 1979
- Estate of Vilda S. Laurin, Deceased v. Commissioner of Internal Revenue, Estate of Fritz L. Meeske, Deceased v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1981
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