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2044(a) to any property if a deduction was allowed with respect
to the transfer of such property to the decedent under section
2056(b)(7). See Estate of Cavenaugh v. Commissioner, 100 T.C.
407, 417 (1993), affd. in part on this issue and revd. in part 51
F.3d 597, 599-601 (5th Cir. 1995).
Under Andrew's will, decedent was entitled to all the income
from the Marital Trust, payable quarterly, and no person had any
power to appoint any part of the principal of the Marital Trust
to any other person. Thus, decedent had a qualifying income
interest for life under sections 2056(b)(7)(B)(ii)(I) and (II)
and 2044(a). Andrew's estate was allowed a deduction under
section 2056(b)(7) for $1,507,881.39 of the assets distributed to
the Marital Trust under Article Five of Andrew's will. This
satisfies section 2044(b)(1)(A). It follows that the value as of
decedent's death of the QTIP deducted by Andrew's estate must be
included in decedent's gross estate.
Petitioner does not argue that the terms of Andrew's will
and the Marital Trust are inconsistent with the foregoing
analysis. Rather, petitioner appears to object to inclusion in
the gross estate because the Marital Trust was allegedly
mismanaged by its trustees.2 Petitioner contends that as a
result of such mismanagement, not all the income was paid to
decedent or for her benefit and that principal was appointed
2Petitioner has not established that such mismanagement
occurred.
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