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On brief, petitioner acknowledges--and correctly so--that we
are not bound by the April 8, 1994, order of distribution of Mrs.
Chamberlain's estate issued by the local probate court. Legal
rights and interests in property and transfers thereof are
created and determined by State law, but the manner in which and
the extent to which such rights and interests shall be subjected
to Federal tax are determined by Federal law. See Helvering v.
Stuart, 317 U.S. 154, 161 (1942); Morgan v. Commissioner, 309
U.S. 78 (1940); Estate of Sweet v. Commissioner, 234 F.2d 401
(10th Cir. 1956), affg. 24 T.C. 488 (1955); Estate of Bennett v.
Commissioner, 100 T.C. at 59; see also Mapes v. United States, 15
F.3d 138 (9th Cir. 1994) (Federal law controlled whether
disclaimant had an interest in his mother's estate subject to
Federal tax lien, but State law controlled whether disclaimant
had any interest in property, lienable or not). "An order or
judgment of a State trial court obtained or entered in a
nonadversarial proceeding is not binding as between one or more
parties to such proceeding and the United States with respect to
income or estate tax imposed by Federal legislation." Estate of
Bennett v. Commissioner, supra at 60; see also Commissioner v.
Estate of Bosch, 387 U.S. 456 (1967); Estate of Sweet v.
Commissioner, supra at 404; Brodrick v. Moore, 226 F.2d 105 (10th
Cir. 1955). Accordingly, we hold that decedent did not disclaim
any property in accordance with Oregon law.
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