Estate of Henry A. Lassiter, deceased, Paula Ann Masters Lassiter, administrator, C.T.A. - Page 14

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          set forth in Item IV of Mr. Lassiter’s will.  The parties have                
          further stipulated that the trust created by Item IV qualifies                
          under section 2056(b)(5) for the marital deduction.  Mrs.                     
          Lassiter, as administrator of her husband’s estate, filed a                   
          petition with this Court on November 4, 1998, seeking                         
          redetermination of respondent’s disallowance.                                 
          I.  Contentions of the Parties                                                
               Respondent contends that the marital deduction claimed by                
          the estate is properly disallowed on either of two primary bases.             
          First, accepting as true statements by family members regarding               
          their belief that Mr. Lassiter executed a more recent will or                 
          codicil which could not be found, respondent asserts that the                 
          1970 will was revoked by operation of Georgia law.  Hence,                    
          according to respondent, Mr. Lassiter died intestate, and trust               
          provisions contained in the 1970 will cannot serve as grounds for             
          a marital deduction.                                                          
               In the alternative, even if the 1970 will is deemed                      
          effective, respondent maintains that the terms of the trust set               
          forth in Item V preclude Mrs. Lassiter’s interest therein from                
          constituting qualified terminable interest property (QTIP) as                 
          necessary for the section 2056(b)(7) deduction.  Respondent                   
          further avers that the disclaimers executed by the beneficiaries              
          and trustee fail to cure, among other things, the fact that                   

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