115 T.C. No. 3
UNITED STATES TAX COURT
ESTATE OF MELVINE B. ATKINSON, DECEASED, CHRISTOPHER J.
MACQUARRIE, EXECUTOR, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 20968-97. Filed July 26, 2000.
R determined that the estate was not entitled to
deduct the charitable remainder interest in a trust
that was intended to be a charitable remainder annuity
trust (CRAT). R challenged the validity of the CRAT on
two bases: First, that the annual 5-percent minimum
distributions were not made as required by sec.
664(d)(1)(A), I.R.C., and second, that sec.
664(d)(1)(B), I.R.C., will be violated because the
trust corpus would have to be invaded to satisfy the
estate’s obligation to pay one of the noncharitable
secondary beneficiary’s apportioned part of the estate
tax.
Held: No charitable deduction is allowable
because: (1) Sec. 664(d), I.R.C., requires that
minimum payments be distributed annually from the
inception of the CRAT to certain designated persons,
and these payments were not made, and (2) no portion of
a purported CRAT may be paid to anyone other than
designated noncharitable beneficiaries or statutorily
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