Estate of Henry A. Lassiter, deceased, Paula Ann Masters Lassiter, administrator, C.T.A. - Page 25

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          repealed former section 2056(c), thus creating a deduction                    
          unlimited in amount.  See ERTA sec. 403(a)(1)(A), 95 Stat. 301.               
          At the time of its repeal, section 2056(c) had limited the                    
          aggregate deduction to the greater of $250,000 or 50 percent of               
          the value of the adjusted gross estate.  At the time the 1970                 
          will was drafted, the limitation contained in section 2056(c) was             
          simply 50 percent of the adjusted gross estate’s value.                       
               The estate now seeks through the various disclaimers to take             
          advantage of these changes and to obtain a greater deduction than             
          would be afforded by placing up to half of Mr. Lassiter’s assets              
          in the Item IV trust.  As a threshold matter, however, the estate             
          will be unable to do so if bound by the transitional rule in                  
          section 403(e)(3) of ERTA, 95 Stat. 305.  Section 403(e)(3) of                
          ERTA retains the former aggregate amount limitation if four                   
          conditions are met:                                                           
               (A) the decedent dies after December 31, 1981,                           
               (B) by reason of the death of the decedent property                      
               passes from the decedent or is acquired from the                         
               decedent under a will executed before the date which is                  
               30 days after the date of the enactment of this Act, or                  
               a trust created before such date, which contains a                       
               formula expressly providing that the spouse is to                        
               receive the maximum amount of property qualifying for                    
               the marital deduction allowable by Federal law,                          
               (C) the formula referred to in subparagraph (B) was not                  
               amended to refer specifically to an unlimited marital                    
               deduction at any time after the date which is 30 days                    
               after the date of enactment of this Act, and before the                  
               death of the decedent, and                                               

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