Estate of Cyril I. Magnin, Deceased, Donald Isaac Magnin, Executor - Page 24

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          trust in which the decedent retains only a life interest, the               
          adequacy of the consideration must be determined by comparing the           
          value of the consideration received with the total value of the             
          property the decedent transferred to the trust rather than with             
          just the remainder interest.  Id. at 259-260.  Indeed,                      
          petitioner's argument is no different from contending that the              
          value of the retained life estate should be regarded as part of             
          the consideration received for the transfer, an argument this               
          Court has specifically rejected.  Estate of Glen v. Commissioner,           
          45 T.C. 323, 343 (1966).                                                    
               The same issue was presented in United States v. Past,                 
          supra, where the decedent and her husband transferred their                 
          community property to a trust in which the decedent received an             
          income interest for life.  The transfer was pursuant to a divorce           
          settlement.  Citing this Court's opinion in Estate of Gregory v.            
          Commissioner, supra, the Court of Appeals for the Ninth Circuit             
          rejected the argument that the decedent's transfer to the trust             
          was excepted from section 2036(a) as a bona fide sale for                   
          adequate and full consideration.  The court held that the                   
          consideration received by the decedent had to be measured against           
          the total value of the property that she contributed to the                 
          trust, rather than the value of the remainder interest in the               
          property that she contributed.  Given that the decedent                     
          transferred $243,989 in property to the trust in return for a               
          life estate worth approximately $143,346, the Court of Appeals              




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