Estate of Judith U. Harrison - Page 1
















                                   115 T.C. No. 13                                    


                               UNITED STATES TAX COURT                                


             ESTATE OF JUDITH U. HARRISON, DECEASED, RICHARD J. TEJEDA,               
          EXECUTOR, AND ESTATE OF KENNETH R. HARRISON, DECEASED, RICHARD J.           
                          TEJEDA, EXECUTOR, Petitioners v.                            
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No.  16018-98.                 Filed August 22, 2000.           

                    H and W boarded their private aircraft in July of                 
               1993 but never arrived at their destination.                           
               Subsequently, probate orders were entered presuming                    
               identical April 1, 1994, dates of death and finding it                 
               more probable than not that the airplane crashed en                    
               route.  The will of each spouse presumed survival by                   
               the other in circumstances where order of death was                    
               unknown and transferred a life estate to such surviving                
               spouse.  For estate tax purposes, the transferred life                 
               estates were valued on the basis of actuarial tables,                  
               and each estate took a credit for tax on prior                         
               transfers pursuant to sec. 2013, I.R.C.  R disallowed                  
               these credits on the grounds that, under recognized                    
               valuation principles, the life estates were not to be                  
               valued by resort to actuarial tables but, rather, must                 
               be accorded no value.                                                  
                    Held:  The reciprocal life estates at issue are not               
               appropriately valued utilizing actuarial tables, must be               





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