Lois P. Cottrell v. Commissioner of Internal Revenue

ARNOLD, Circuit Judge.

This is a gift-tax case. The question is whether Lois P. Cottrell made a taxable transfer of property by gift within the meaning of 26 U.S.C. §§ 2501 and 2511 when she disclaimed her remainder interest created by her father’s will. The Tax Court, 72 T.C. 489, found that a taxable transfer was made and determined a deficiency in the amount of $4,639,402.50. Because this case is indistinguishable in any material respect from Keinath v. Commissioner, 480 F.2d 57 (8th Cir. 1973), we reverse.

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Parker Webster Page died testate on January 22, 1937, a resident of Essex County,…