- 29 -
decedent's death in 1993. Respondent also concedes that decedent
received $14,303 of this income as distributions from Garry's
estate, and that Garry's estate expended $72,266 on expenses
related to the production of this income.
As a result of these concessions, respondent now contends
that during 1979-93, decedent became entitled to $913,200 of the
investment income of Garry's estate, which was neither
distributed to decedent nor spent on the costs of earning that
income. Respondent further contends that decedent permitted the
children to enjoy the economic benefit of this $913,200, and
thereby made aggregate taxable gifts to the children of that
amount, also during 1979-93.
The evidence sustains respondent's first contention (and we
have so found). During 1979-93, decedent became entitled to
$913,200 of the investment income of Garry's estate, which was
neither distributed to decedent nor spent to produce that income.
We now consider whether decedent made taxable gifts of all or
part of that $913,200 to her children, as respondent further
contends.
A. Relevance of Decedent's Taxable Gifts to This Estate Tax
Case
Section 2001(a) imposes the Federal estate tax on the
transfer of the "taxable estate" of every decedent who is a
citizen or resident of the United States. Under certain
Page: Previous 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 NextLast modified: May 25, 2011