- 20 - expectation of gain or profit. There was no employment relationship. IV. First Claim for Refund Petitioners claim an overpayment of estate tax in the amount of $212,438.06 on account of their failure to deduct $797,475.50 as a claim against the estate. That amount (the inheritance) represents the value of substantially all of the assets received by Bell pursuant to decedent’s last will and the accompanying trust agreement (together, the will). Petitioners argue that the inheritance was paid pursuant to decedent’s obligation to provide for Bell in his will, which obligation was established by the Agreement. Section 2053(a) provides that the value of the taxable estate shall be determined by deducting from the value of the gross estate certain items, including claims against the estate. See sec. 2053(a)(3). In pertinent part, section 2053(c)(1)(A) provides: “The deduction allowed by this section in the case of claims against the estate, unpaid mortgages, or any indebtedness shall, when founded on a promise or agreement, be limited to the extent that they were contracted bona fide and for an adequate and full consideration in money or money’s worth”. We first note that the Agreement is not mentioned in the will, and petitioners have failed to show that Bell has made any claim against the estate. Petitioner Kyle C. Brooks isPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011