- 7 -
decedent's gross estate. Petitioner attached the following
statement to its estate tax return:
Statement Regarding Question 6 of Part 4
Item Two of the Will of James P. Letts, Jr., the
late husband of Mildred G. Letts, created a trust for
her benefit. Pursuant to the terms of that trust,
Mildred G. Letts was to receive all of the income from
the trust for life. She also was given the power to
withdraw up to $40,000 from the trust each year (see
Schedule H), but had no other general power of
appointment. On the Form 706 filed on behalf of the
estate of James P. Letts, Jr., a copy of which is
attached hereto, the executor did not elect to treat
the Item Two trust as qualified terminable interest
property. Consequently, the assets held in the item
two trust are not includible in the gross estate of
Mildred G. Letts under section 2044.
James P. Letts III and JoAnne L. Magbee signed decedent's
Federal estate tax return. It was filed on April 20, 1992.
Respondent determined that the value of the Item II trust is
includable in decedent's gross estate.2 Petitioner concedes that
$40,000 of the trust property is includable in decedent's gross
estate because it was subject to decedent's power of withdrawal
or appointment at her death.
2 The parties agree that the value of the Item II trust is
$967,407 if the Court decides that the value of the Item II trust
is includable in decedent's gross estate.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011