T.C. Memo. 2000-324
UNITED STATES TAX COURT
ESTATE OF HENRY A. LASSITER, DECEASED, PAULA ANN MASTERS
LASSITER, ADMINISTRATOR, C.T.A., Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 17643-98. Filed October 19, 2000.
D executed a will in 1970 which set forth a
testamentary plan placing the majority of D’s property
into two trusts. The terms of one trust are such that
a marital deduction is available for assets passing
thereto. The other, residuary, trust does not as
written satisfy the requirements for such a deduction,
largely by reason of interests therein granted to
persons other than D’s surviving spouse. Following D’s
death in 1994, beneficiaries of his estate executed a
series of disclaimers in an attempt to enable the
residuary trust to qualify for the marital deduction
under sec. 2056(b)(7), I.R.C. When this deduction was
claimed for Federal estate tax purposes, it was
disallowed by R.
Held: The estate is entitled to a deduction
pursuant to sec. 2056(b)(7), I.R.C., for property
placed in the residuary trust established under D’s
1970 will.
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