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decedent had previously reported as taxable income. Therefore,
at the time of her death, decedent had statutory rights pursuant
to section 1341(a) to receive tax benefits based on whatever
amount she ultimately had to pay Exxon. Petitioner is entitled
to an estate tax deduction in the amount paid to satisfy Exxon's
claim, as well as section 1341(a) relief for payment of the same
claim. Exxon's claim decreases the estate's assets while the
right to section 1341(a) relief increases the estate's assets.
Under these circumstances, it would be inappropriate to consider
one in the determination of the taxable estate while excluding
the other.
The amount for which a claim is ultimately settled is
evidence of its value. See United States v. Simmons, supra at
218 (finding the amount for which a claim was eventually settled
to be "highly indicative" of the value of the claim). In the
instant case, there was no evidence introduced to show that the
value of the contingent right to section 1341(a) relief at
decedent's death was less than the amount that will actually be
received. On brief, petitioner confined its argument to whether
the contingent right to section 1341(a) relief was or was not an
asset includable in the gross estate. Petitioner did not argue
that, in the event we find the right to section 1341(a) relief
includable in the gross estate, the value of this right for
estate tax purposes is anything less than the amount of the
benefit ultimately received.
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