Estate of Marguerite S. Millikin, Deceased, Quentin Alexander, Executor, and Severance A. Millikin Trust B, Society National Bank, F.K.A. Ameritrust Company, Trustee - Page 2

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                    SUPPLEMENTAL MEMORANDUM FINDINGS OF FACT AND OPINION                                

                  COLVIN, Judge:  Respondent determined that the Estate of                              
            Marguerite S. Millikin (the estate) has an estate tax deficiency                            
            of $682,367 and that the Severance A. Millikin Trust B (Trust B)                            
            is liable for a generation-skipping transfer tax of $67,529.  As                            
            then required by Estate of Park v. Commissioner, supra, we                                  
            applied Ohio law to decide whether petitioners1 could deduct                                
            expenses for Federal estate tax purposes.  Estate of Millikin v.                            
            Commissioner, T.C. Memo. 1995-288.  We held that the estate could                           
            deduct costs until March 16, 1990, to maintain Ripplestone, a                               
            150-acre estate that had been decedent's home, but that it could                            
            not deduct costs to maintain or sell Ripplestone after March 16,                            
            1990.                                                                                       
                  The estate and Trust B appealed.  The Court of Appeals for                            
            the Sixth Circuit overruled its opinion in Estate of Park v.                                
            Commissioner, supra, and held that the estate must satisfy both                             
            the Secretary's estate tax regulations and Ohio law to deduct                               
            costs of maintaining and selling Ripplestone.  Estate of Millikin                           
            v. Commissioner, 125 F.3d at 344-346.  The Court of Appeals for                             
            the Sixth Circuit did not decide whether the expenses to keep and                           
            sell Ripplestone after March 16, 1990, were necessary                                       


                  1 References to petitioners are to the estate and its                                 
            executor and to Trust B and its trustee.  References to decedent                            
            are to Marguerite S. Millikin.                                                              




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