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decedent died.3 The estate asserts that the Trust fails because
its settlors never relinquished control over the property
transferred to it. The estate asserts that the Trust is revoked
if the settlors' intent to qualify Trust A for the marital
deduction is thwarted.
We agree with respondent that the property passing to
Trust A does not qualify for the marital deduction. Property
interests included in a decedent's gross estate generally meet a
threshold requirement for the marital deduction if the interests
pass to the decedent's surviving spouse. Sec. 2056(a). An
interest will not qualify for this deduction, however, if it is
terminable within the meaning of section 2056(b). Jackson v.
United States, 376 U.S. 503, 508 (1964) (citing Starrett v.
Commissioner, 223 F.2d 163 (1st Cir. 1955), affg. Estate of
Tingley v. Commissioner, 22 T.C. 402 (1954)); Hansen v. Vinal,
413 F.2d 882, 886 (8th Cir. 1969); Allen v. United States,
359 F.2d 151, 154 (2d Cir. 1966); United States v. First Natl.
Trust & Sav. Bank, 335 F.2d 107, 113 (9th Cir. 1964); Bookwalter
v. Lamar, 323 F.2d 664 (8th Cir. 1963). An interest is
terminable if: (1) It will terminate or fail on the lapse of
time, on the occurrence of an event or contingency, or on the
failure of an event or contingency to occur, (2) it passes for
less than adequate and full consideration from the decedent to a
3 The estate requests that it be allowed to recompute its
Federal estate tax liability by reference to only those assets in
the Trust which the decedent had contributed to the Trust.
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