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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.
Discussion
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1970 will was revoked by operation of Georgia law.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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