- 55 -
testamentary plan, are recognized under both Federal and State
law. Where, as here, a party seeks to achieve a result
uncontemplated by the testator by means of such renunciations,
original intent becomes largely irrelevant. What Mr. Lassiter
may have envisioned has little relation to, and offers us minimal
assistance in deciding, what interests were ultimately received
through operation of the disclaimers and State law.
Third, we observe that cases such as Estate of Bennett v.
Commissioner, 100 T.C. 42 (1993), and Estate of Nicholson v.
Commissioner, 94 T.C. 666 (1990), cited by respondent for the
proposition that lower State court actions do not control Federal
tax consequences, do not authorize us to ignore the long-accepted
device of beneficiary disclaimers, which we independently have
determined to be valid under State and Federal law.
Lastly, because we have found Mrs. Lassiter’s interest to
fall within the terms of section 2056(b)(7), we need not reach
the extent to which policy considerations and substantial
compliance theories would justify a deduction for interests not
meeting the statutory requisites.
To reflect the foregoing,
Decision will be entered
for petitioner.
Page: Previous 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 Last modified: May 25, 2011