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Following the estate's concession as to the 1988 and 1989
additions to tax, the remaining issue is whether the fund
transfers from M.J. Machat Management Corp. Pension Plan and
Trust (the Plan and Trust) to a temporary administrator were
includable in the estate's gross income upon receipt by the
temporary administrator. We hold they were. Unless otherwise
stated, section references are to the Internal Revenue Code in
effect for the years in issue. Rule references are to the Tax
Court Rules of Practice and Procedure.
Background
This case was submitted fully stipulated under Rule 122.
The stipulation of facts and the exhibits submitted therewith are
incorporated herein by this reference. When the petition was
filed, Avril Giacobbi (Ms. Giacobbi) resided in London, England,
and Eric R. Sklar (Mr. Sklar) resided in Wantaugh, New York.
Martin J. Machat (decedent) died of lung cancer on March 19,
1988, at the age of 67. Decedent's last will and testament
(will), dated March 4, 1988, was propounded by Ms. Giacobbi, who
was decedent's companion at the time of his death. After
decedent's death, his estranged wife Roslyn Machat (Ms. Machat)
brought suit to set aside a separation agreement entered into
between Ms. Machat and decedent on July 3, 1984. Litigation was
also brought by Ms. Machat and decedent's and Ms. Machat's
children to deny probate of the will. Since probate of
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