- 10 -
case. In Estate of Mellinger, the decedent died owning 2,460,580
shares of stock that were held in her revocable trust. The stock
was included in her estate pursuant to section 2033. Also
included in her taxable estate, pursuant to section 2044, were
2,460,580 shares of the same stock held in a QTIP trust
established by the decedent's predeceased spouse. Respondent
argued that the shares should be aggregated and valued as a
control block rather than as two separate minority interests. We
rejected that argument stating:
Respondent has identified nothing in the statute that
indicates that Congress intended that result or that
QTIP assets should be aggregated with other property in
the estate for valuation purposes. Cf. secs. 267, 318,
544 (indicating aggregation of interests in terms of
ownership). Furthermore, at no time did decedent
possess, control, or have any power of disposition over
the FOH shares in the QTIP trust. Cf. secs. 2035,
2036, 2041 (requiring inclusion in the gross estate
where decedent had control over the assets at some time
during her life). [Id. at __ (slip op. at 17).]
Respondent, in Estate of Mellinger, also argued that the
decedent should be treated as the owner of QTIP property for
valuation purposes. We held that "Neither section 2044 nor the
legislative history indicates that decedent should be treated as
the owner of QTIP property for this purpose." Id. at __ (slip
op. at 18). Accordingly, the shares of stock in the trusts were
valued as two separate minority interests. Id. at __ (slip op.
at 18); see also Estate of Bonner v. United States, 84 F.3d 196
(5th Cir. 1996).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011