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been allowed in light of the revised actuarial values for
Birchfield’s annuity.
OPINION
The issue before us is whether, in its operation, decedent’s
charitable remainder annuity trust met the statutory requirements
so as to qualify for a charitable deduction. Specifically, we
consider whether the trust made the statutorily required payments
to decedent during her lifetime and the effect of the trust’s
obligation to make payments to the secondary beneficiary after
decedent’s death. If we decide that the trust was operationally
qualified, we must then decide the appropriate life expectancy of
Mary Birchfield to decide whether petitioner is entitled to a
larger charitable deduction. On brief and at trial,2 respondent
maintained that the trust failed to qualify as a CRAT for
purposes of sections 2055 and 664 because of actions of the
trustee and/or trustor. If the trust is so disqualified, section
2055 precludes the taking of a charitable deduction for the
charitable remainder interest.
Section 2055 provides for a deduction from the Federal gross
estate of an amount equal to the property passing from a decedent
to a charitable organization of the type described in subsection
2 At trial, respondent also raised the issue of whether
certain expenses of the trust were reasonable. After reviewing
the pertinent materials, we found that the reasonability of the
fees was a new issue and therefore could not be raised for the
first time at trial. Though respondent raises the issue again on
brief, we adhere to our earlier ruling.
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