Rosalyn Deutsch - Page 25

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          is also excluded from the subchapter J estate when title to such            
          property passes directly to an heir or devisee.  “[E]ven though             
          the real property is in the possession of the executor or                   
          administrator during the period of administration”, such                    
          transfers are subject only “to the general provisions of section            
          102 of the Code.”  Rev. Rul. 68-49, 1968-1 C.B. 304, 305; cf.               
          Rev. Rul. 62-116, 1962-2 C.B. 207.                                          
               In Rev. Rul. 64-101, 1964-1 C.B. (Part 1) 77, relied upon by           
          petitioner, the Commissioner advanced the broad exclusion of real           
          property as the primary ground for similarly excluding payment of           
          Florida statutory dower from section 662(a)(2)(B) distributions.            
          The Commissioner primarily justified the exclusion of dower by              
          its similarities in “legal characteristics to the real property             
          exception provided in” section 1.661(a)-2(e), Income Tax Regs.              
          Rev. Rul. 64-101, 1964-1 C.B. (Part 1) at 79.  The Commissioner             
          went on to declare that the statutory “dower interest might be              
          even more absolute than real property * * * since real property *           
          * * might be liable for debts of the estate.”16  Id.                        

               16 In 1964, the personal property portion of Florida                   
          statutory dower was liable for secured debts of the estate, while           
          real property was not so liable.  Fla. Stat. Ann. sec. 731.34               
          (West 1964) (repealed 1974); 1939 Fla. Laws ch. 18999, sec. 1.              
          In contrast, the entire Florida elective share, both real and               
          personal property, is reduced by both secured and unsecured                 
          claims.  Fla. Stat. Ann. sec. 732.207 (West 1995).  Rev. Rul. 64-           
          101, 1964-1 C.B. (Part 1) 77, to the extent that it reflects an             
          assumption that none of the statutory dower interest could be               
          subject to secured debts, misreads Florida law.  However, it                
                                                             (continued...)           




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