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acceptable charitable entities, and here the trust will
be invaded to pay the estate tax attributable to a
portion of the estate received by one of the
noncharitable beneficiaries.
David D. Aughtry and Christopher J. MacQuarrie, for
petitioner.
Francis C. Mucciolo, for respondent.
GERBER, Judge: Respondent determined a deficiency in
petitioner’s Federal estate tax in the amount of $2,654,976. The
deficiency arose in connection with the operation of a charitable
remainder annuity trust (CRAT) created by decedent. The issue
for our consideration is whether the trust functioned exclusively
as a charitable remainder trust from its creation, thereby
remaining a valid trust, so as to qualify the estate for a
charitable deduction for the remainder interest.
FINDINGS OF FACT
The stipulation of facts and the exhibits attached thereto
are incorporated herein by this reference.
Melvine B. Atkinson (decedent), died on June 7, 1993, at the
age of 97, a resident of Miami Beach, Florida. The executor of
her estate, Christopher J. MacQuarrie (MacQuarrie), also resided
in Florida at the time the petition was filed.
On August 9, 1991, decedent placed stock worth $3,999,974 in
trust under a document entitled “Melvine B. Atkinson Charitable
Remainder Annuity Trust” (annuity trust) and named MacQuarrie as
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