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OPINION
Section 2001 imposes a tax on the transfer of the taxable
estate of all persons who are citizens or residents of the United
States at the time of death. The amount of the tax is
determined, in part, by the value of the taxable estate. Sec.
2001(b). Section 2051 defines the value of the taxable estate as
the gross estate less deductions. Section 2056(a) allows a
Federal estate tax marital deduction from a decedent's gross
estate for the value of property interests passing from the
decedent to the surviving spouse. As a general rule, the marital
deduction is reduced by estate succession, legacy, or inheritance
taxes allocable to the surviving spouse's interest. Sec.
2056(b)(4)(A).
The issue in this case is whether the portion of the
residuary estate passing to Mr. Miller should bear a
proportionate share of the Federal estate tax, reducing the
amount of the allowable Federal estate tax marital deduction, as
contended by respondent, or whether the trust should bear all of
the estate tax burden, as contended by petitioner. Section 2056
does not specify how taxes are to be allocated among the
interests comprising the estate. Rather, State law governs the
manner in which a decedent's Federal estate tax burden is
allocated among estate assets. Riggs v. Del Drago, 317 U.S. 95,
100 (1942); Estate of Wycoff v. Commissioner, 59 T.C. 617, 622
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Last modified: May 25, 2011