Estate of Van Horne v. Commissioner
United States Tax Court
1. At her death, decedent was obligated to pay a monthly sum to her former husband for the remainder of his life. Decedent's ex-husband properly filed his claim against decedent's estate, and the claim was approved by the State court with jurisdiction over the estate. Decedent's ex-husband died 7 months after decedent, thus extinguishing the estate's obligation after only seven payments. His early death was unexpected at the time of her death.
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1. At her death, decedent was obligated to pay a monthly sum to her former husband for the remainder of his life. Decedent's ex-husband properly filed his claim against decedent's estate, and the claim was approved by the State court with jurisdiction over the estate. Decedent's ex-husband died 7 months after decedent, thus extinguishing the estate's obligation after only seven payments. His early death was unexpected at the time of her death. Held, the obligation was fully enforceable as of the date of decedent's death and the estate is therefore entitled to a deduction for the actuarial…
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined an estate tax deficiency of $448,828.66 in respect of the Estate of Ada E. Van Horne. Following several concessions by the estate (sometimes referred to as petitioner), two issues remain: (1) Whether, in valuing an undisputed claim of a life interest against the estate for purposes of the deduction under section 2053(a)(3), I.R.C. 1954, the Commissioner properly disregarded the actuarial tables in order to give effect to the claimant’s unexpected early death subsequent to the date of the decedent’s death, and (2) whether certain stock in the…
2Cases cited27 opinions
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Humes v. United StatesSupreme Court of the United States · 1928
- United States v. MasonSupreme Court of the United States · 1973
- Commissioner of Internal Revenue v. MaresiCourt of Appeals for the Second Circuit · 1946
- Estate of Boeshore v. CommissionerUnited States Tax Court · 1982
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3Cited by41 opinions
- Estate of Newhouse v. CommissionerUnited States Tax Court · 1990
- Estate of Gilford v. CommissionerUnited States Tax Court · 1987
- Estate of Sachs v. CommissionerUnited States Tax Court · 1987
- Estate of Spruill v. CommissionerUnited States Tax Court · 1987
- Marshall Naify Revocable Trust v. United StatesCourt of Appeals for the Ninth Circuit · 2012
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