Barbara Ann McMahon - Page 10




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          Rollert Residuary Trust v. Commissioner, 80 T.C. 619, 630 (1983),           
          affd. 752 F.2d 1128 (6th Cir. 1985); Gaddy v. Commissioner, 38              
          T.C. 943, 951 (1962), affd. in part and remanded in part 344 F.2d           
          460 (5th Cir. 1965).  We therefore turn to the merits of this               
          issue.  The final agreement provided in relevant part:                      
               The Husband [Mr. Reed] shall pay to the Wife [petitioner] as           
               and for lump sum alimony the amount of $10,000 payable                 
               within fifteen (15) days from the date of the Final Judgment           
               of Dissolution.  Beginning January 1, 1996, the Husband                
               shall pay to the Wife as rehabilitative alimony the sum of             
               $516.67 per month for sixty (60) months which shall be due             
               and payable the first of each month, until the death of                
               either party or the remarriage of the Wife or the completion           
               of the sixty (60) payment obligation, whichever shall first            
               occur.                                                                 
          The terms of this agreement do not state that the liability to              
          make the $10,000 payment would have ceased after the death of               
          petitioner, despite the fact that the very next sentence                    
          specifically terminates Mr. Reed’s liability to make the                    
          rehabilitative alimony payments (of $516.67 for 60 months) after            
          petitioner’s death.  Furthermore, assuming that Florida law would           
          affect the alimony obligation under the final agreement (the                
          status of the agreement is not clear from the record), the                  
          obligation to make a lump-sum alimony payment--unlike the                   
          obligation to pay permanent periodic alimony--does not terminate            
          upon the death of the payee spouse by operation of Florida law.             
          See Canakaris v. Canakaris, supra at 1201; Philipose v.                     
          Philipose, 431 So.2d 698, 700 (Fla. Dist. Ct. App. 1983).  In               
          Canakaris, the Supreme Court of Florida stated that there arises            





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