Estate of Clayton v. Commissioner

WIENER, Circuit Judge.

This federal estate tax case concerns the eligibility, for purposes of the estate tax Marital Deduction (Marital Deduction), of that portion of a legacy in trust for the benefit of the surviving spouse for which a timely Qualified Terminable Interest Property (QTIP) election was made by the surviving spouse in her capacity as Independent Executrix. On appeal Petitioners-Appellants, Mary Magdalene Clayton (Surviving Spouse) and The First National Bank of Lamesa (the Bank), as Independent Co-Executors of the Estate of Arthur M. Clayton, Jr. (Testator), seek reversal of the…