- 16 -
estate pursuant to sections 2034 to 2042. Section 2035(d)(3)(C)
closes the circle by providing that gifts made by a decedent
within 3 years of his death are treated as if they are included
in the gross estate for purposes of subchapter C of chapter 64,
which includes section 6324(a)(2). Because petitioners received
property the value of which is included in decedent's gross
estate pursuant to section 2035(d)(3)(C), the only
congressionally mandated link or connection between petitioners
and the disputed estate tax liability has been satisfied. This
promotes sound Federal tax policy by enhancing the Commissioner's
ability to collect unpaid estate taxes where a taxpayer has
rendered himself insolvent by giving away the vast majority of
his assets within 3 years of death.
In sum, we hold that section 2035(d)(3)(C) provides that the
value of the stock that decedent transferred to petitioners is
included in the gross estate for purposes of subchapter C of
chapter 64, including section 6324(a)(2). Consequently,
petitioners are liable as transferees for the estate tax
deficiency due from the Armstrong estate. Consistent with the
foregoing, we will deny petitioners’ motions for partial summary
judgment.
To reflect the foregoing,
Orders denying petitioners'
motions for partial summary judgment
will be issued.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Last modified: May 25, 2011