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1. Marital Deduction
The Estate of James Letts, Jr., claimed a $1,317,969 marital
deduction. Of that amount, $317,705 was attributable to assets
passing to decedent as joint tenant with the right of
survivorship. The remaining $1,000,264 was for the Item II
trust, which was described on Schedule M as a "qualified marital
trust". The Estate of James Letts, Jr., did not state on its
return whether or not the Item II trust property was terminable
interest property. The Estate of James Letts, Jr., passed
$1,317,969 to decedent and paid no estate taxes.
2. Responses by the Estate of James Letts, Jr., to the
Instructions on Line 4 of Page 2 and on Schedule M of
the Estate Tax Return It Filed
On page 2 of the return filed by the Estate of James Letts,
Jr., under "Elections by the Executor", the following question
appears on line 4: "Do you elect to claim a marital deduction
for qualified terminable interest property (QTIP) under section
2056(b)(7)?" The executor of the Estate of James Letts, Jr.,
placed an "x" in the box for "No".
The instructions for line 4 say that if the gross estate
exceeds $500,000, the property for which the election is being
made must be listed on Schedule M and clearly marked as
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Last modified: May 25, 2011