- 2 -
The time to assess tax against H's estate had
passed when D died. R did not examine H's estate tax
return.
D's estate tax return stated that the interest H
left to D was a terminable interest but was not QTIP.
D's estate (like H's estate) did not include the value
of the property in its taxable estate.
Held, D's gross estate includes the value of the
life interest under the duty of consistency.
Timothy J. Peaden, John C. Sawyer, and Michelle M. Henkel,
for petitioner.
David Delduco and Charles P. Hanfman, for respondent.
OPINION
COLVIN, Judge: Respondent determined that petitioner is
liable for a $461,601 deficiency in Federal estate tax. The
issue for decision is whether, because of the duty of
consistency, decedent's estate includes the value of property
that decedent's husband left to her. We hold that it does.1
Unless otherwise indicated, section references are to the
Internal Revenue Code. Rule references are to the Tax Court
Rules of Practice and Procedure.
1 In light of our holding, we need not decide whether, as
respondent contends, decedent's husband's estate substantially
complied with the QTIP election requirements despite the fact
that the estate stated on the return that the property was not
QTIP, and the estate did not separately list terminable interest
property in Schedule M in its tax return.
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