Estate of Irene H. Govern, Deceased, Revocable Trust of Charles S. Govern, Sr., Transferee, June G. Hall, Trustee and Transferee, June G. Hall, Transferee of Transferee, Muriel McNulty, Transferee o - Page 10

                                       - 10 -                                         
          against petitioner, respondent must prove that petitioner is a              
          "person who, under section 6324(a)(2), is personally liable for             
          any part of such tax."  Sec. 6901(h); sec. 301.6901-1(b); Proced.           
          & Admin. Regs.                                                              
               Section 6324(a)(2) provides in pertinent part:                         
                    (2)  Liability of transferees and others.-- If the                
               estate tax imposed by chapter 11 is not paid when due,                 
               then the spouse, transferee, trustee * * * , surviving                 
               tenant, person in possession of the property by reason                 
               of the exercise, nonexercise, or release of a power of                 
               appointment, or beneficiary, who receives, or has on                   
               the date of the decedent's death, property included in                 
               the gross estate under sections 2034 to 2042,                          
               inclusive, to the extent of the value, at the time of                  
               the decedent's death, of such property, shall be                       
               personally liable for such tax. * * *  [Emphasis                       
               added.]                                                                
               Petitioner makes the following arguments why section                   
          6324(a)(2) does not impose personal liability upon her:  (1)                
          Petitioner asserts that the question of whether she "had"                   
          property for purposes of section 6324(a)(2) is properly a                   
          question of State law; (2) petitioner contends that she is not a            
          transferee because upon decedent's death, the Marital Trust                 
          property passed "free and clear" of such trust; (3) petitioner              
          maintains that because the Minnesota Court of Appeals in Govern             
          v. Hall, 430 N.W.2d 874, 877 (Minn. Ct. App. 1988), held that the           
          Marital Trust "terminated" upon decedent's death, she was never a           
          person in possession of property included in decedent's estate;             
          and (4) petitioner claims that because she was bound to                     
          distribute the trust assets according to the Marital Trust                  





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  Next

Last modified: May 25, 2011