Estate of Golda E. Rixon Kokernot, Deceased, Mary Ann K. Lacy, Executrix - Page 8

                                        - 8 -                                         

          valid basis to deny the benefits of that election in computing              
          the decedent's estate tax.                                                  
               We disagree with Executrix.  Whether petitioner is entitled            
          to the benefits of section 2032A requires the determination of              
          several factual issues; consequently, the application of 2032A is           
          not merely computational.3  The ability of Executrix to use                 
          section 2032A raises a new issue that was not mentioned in the              
          subject notice of deficiency, the instant pleadings, or the                 
          negotiations surrounding the settlement agreement.  Indeed,                 
          Executrix acknowledges in her memorandum of law that she did not            
          advise respondent's counsel that she (Executrix) might want to              
          perfect her protective election under section 2032A once the                
          parties finally reached an agreement.  With this in mind, we                
          refuse to allow Executrix to raise this issue at this time.  The            
          agreement to settle this lawsuit, voluntarily entered into, must            
          be given binding effect.  It is no answer to say that the need to           
          follow such a course could not have been ascertained until the              

          3 To qualify for special-use valuation under sec. 2032A,                    
          property must satisfy a series of requirements, relating to (1)             
          the nature of the property itself, (2) its use on the date of the           
          decedent's death and during the immediately preceding 8-year                
          period, (3) the relationship between the decedent and the person            
          acquiring the property from the decedent, and (4) the fair market           
          value of the property as compared with the fair market value of             
          the decedent's adjusted gross estate (i.e., the 50 percent and 25           
          percent tests).  See sec. 2032A(b).                                         

Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011