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OPINION7
Congress has imposed a graduated estate tax on wealth
passing from one generation to another. The decedent was a man
of considerable wealth, and his transfer of this wealth to the
objects of his bounty was subject to this tax to a significant
degree. To the extent that his wealth could be excluded from his
taxable estate, his estate tax burden would be reduced and a
greater portion of his wealth would pass on to the coexecutors,
who were his daughters and only beneficiaries. From the point of
view of the coexecutors, they would benefit directly by the
removal of any value from the decedent's taxable estate.
Taxpayers may remove value from an estate, and otherwise
minimize their taxes, by employing any legitimate means. In the
case at hand, the question is whether the means employed by the
7 During the trial, respondent elicited testimony from
witnesses who included Kathleen Goldberg, Ira M. Goldberg, and
Larry Goldberg. We find little of this testimony to be credible.
Much of their testimony was vague, elusive, uncorroborated,
inconsistent, and self-serving. Mr. Goldberg, in particular, is
a person of questionable veracity. He did not reveal assets held
by Superior which rightly belonged to the estate, he is a paid
informant who is biased, and he was involved in litigation with
the estate which fostered ill will between him and the estate's
representatives. Under the circumstances, we are not required
to, and we do not, rely on the testimony of these witnesses to
support respondent's positions herein. See Combs v. Plantation
Patterns, 106 F.3d 1519, 1538 (11th Cir. 1997); Henson v.
Commissioner, 887 F.2d 1520, 1526 (11th Cir. 1989), affg. T.C.
Memo. 1988-275; Ruark v. Commissioner, 449 F.2d 311, 312 (9th
Cir. 1971), affg. per curiam T.C. Memo. 1969-48; Clark v.
Commissioner, 266 F.2d 698, 708-709 (9th Cir. 1959), affg. in
part and remanding in part T.C. Memo. 1957-129; Tokarski v.
Commissioner, 87 T.C. 74, 77 (1986).
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