110 T.C. No. 24
UNITED STATES TAX COURT
ESTATE OF WAYNE-CHI YOUNG, DECEASED,
TSAI-HSIU HSU YANG, EXECUTRIX, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 20139-94. Filed May 11, 1998.
Decedent and his wife Yang owned real property in
California, a community property State. Decedent's Federal
Estate Tax Return reported 50 percent of the date of death
value of the property as decedent's interest therein under
sec. 2033, I.R.C., and then claimed a 15-percent fractional
interest discount under Propstra v. United States, 680 F.2d
1248 (9th Cir. 1982). After filing the estate tax return, P
obtained a State trial court decree which adjudicated
decedent's interest in certain property. R was not a party
to the State court proceeding. R determined that decedent
and Yang held the property as joint tenants with right of
survivorship, as stated in the deeds. Therefore, R
determined that decedent's gross estate included half the
value of the property under sec. 2040, I.R.C., and
disallowed the 15-percent fractional interest discount.
Held: The State trial court's decree does not bind
this Court for Federal estate tax purposes. Further, P has
failed to overcome the presumption of joint tenancy with
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