Estate of Anna Soberdash, Deceased, Wilma Porada and Mary Ann Lacek, Co-Executrices - Page 11

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          allowed under section 2056(b)(7) for Andrew's estate.  We hold              
          that respondent's determination is correct.3                                
               The next issue is whether the gross estate should include              
          $91,010.91 in cash equivalents that was not reported by                     
          petitioner on its Federal estate tax return.  Under section 2033,           
          the value of the gross estate shall include the value of all                
          property to the extent of the interest therein of the decedent at           
          the time of her death.                                                      
               On its estate tax return, petitioner reported that as of the           
          date of decedent's death, she held cash of $368,050.76.                     
          According to Integra, the guardian of the Anna Soberdash                    
          Guardianship, the cash equivalents held by the guardianship as of           
          the date of death had a value of $459,061.68.                               
               In support of its position that the amount of cash                     
          reportable on the Federal estate tax return is $368,050.76,                 
          petitioner presented a copy of a decree from the Court of Common            
          Pleas of Fayette County, Pennsylvania, Orphan's Court Division,             
          dated April 16, 1993, showing that the amount of cash available             

               3Sec. 22.2056-1(b), Temporary Estate Tax Regs., 47 Fed. Reg.           
          41736 (Sept. 22, 1982), which was applicable to the QTIP                    
          deduction for Andrew's estate, provides that a QTIP election may            
          be made for all or any part of a property that meets the                    
          requirements of sec. 2056(b)(7)(B)(i)(I) and (II).  A partial               
          election must relate to a fractional or percentile share of the             
          property so that the elective part will reflect its proportionate           
          share of the increment or decline in the whole of the property              
          for purposes of applying sec. 2044.  Sec. 22.2056-1(b), Temporary           
          Estate Tax Regs., supra.  This temporary regulation was                     
          incorporated into the final regulations contained in T.D. 8522,             
          1994-1 C.B. 236, 239, effective Mar. 1, 1994.                               




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